Algeria’s state-owned energy giant, Sonatrach, has signed an $850 million agreement with China’s Sinopec for the exploration and development of the Hassi Berkane-North (HBAN) oil field.
The contract, signed on February 25, was formalized by Sonatrach’s Vice President of Exploration and Production, Farid Djettou, and Sinopec’s General Manager, Xue Weisong.
Located 80 km southwest of Hassi Messaoud, the HBAN field spans 9,700 km² and includes hydrocarbon-rich blocks 428 and 429.
The agreement, valid for 30 years with an optional 10-year extension, builds on a Memorandum of Understanding signed in March 2024 to strengthen energy cooperation between the two companies.
Sinopec will fully finance the initial exploration phase. If results are promising, future investments will be split, with Sinopec covering 70% and Sonatrach 30%.
This partnership marks a significant step in Algeria’s efforts to boost hydrocarbon production and attract foreign investment.
