(Ecofin Agency) - Algeria’s state oil company, Sonatrach has signed a Memorandum of Understanding with Danish oil company Maersk to strengthen the existing partnership between the two companies.The Memorandum of Understanding was signed by Sonatrach vice-president for exploration and production, Salah Mekmouche and Maersk vice-president for non-operated ventures Carsten Sonne Schmidt, Algeria Press Service reports.

The signing of the memorandum “is part of the extension of talks launched by Sonatrach with all its partners on the development of cooperation and partnership,” the company said in a communiqué.“This memorandum confirms the willingness of Sonatrach and Maersk Oil to strengthen the existing partnership and establish framework suitable for prospecting and the achievement of news opportunities between the two companies in new upstream projects,” it added.

Algeria has been affected by the decline in world oil prices and has made effort to attract energy investment to help develop new fields and boost existing production.The Algerian government has said it plans to develop existing fields such as Hassi Rmel, Hassi Messaoud, Berkine and El Merk to boost oil and gas production.

According to Sonatrach's CEO, Amin Mazouzi (photo), Algeria's gas output is estimated at 132.2 billion cubic metres. It is expected to reach 141.3 bcm in 2017, 143.9 bcm in 2018, 150 bcm in 2019 and 165 bcm in 2020.

Anita Fatunji