Algeria’s Sonatrach Group has signed an $850 million agreement with China’s Sinopec for the development of the Hassi Berkane-North (HBAN) oil field.
The contract was formalized on February 25 between Farid Djettou, Sonatrach’s Vice President of Exploration and Production, and Xue Weisong, General Manager of Sinopec.
Situated 80 km southwest of Hassi Messaoud, the HBAN field spans 9,700 km² and includes hydrocarbon-rich blocks 428 and 429. The agreement, set for a 30-year term with a possible 10-year extension, follows a memorandum of understanding signed in March 2024 to enhance cooperation in the hydrocarbon sector.
Sinopec will fund the initial exploration phase entirely, with subsequent investments split 70% to Sinopec and 30% to Sonatrach, contingent on successful exploration results.
Source: Energy Capital and Power
