Algeria’s state-owned energy company Sonatrach has signed an agreement to form a new company in partnership with US oil services company Baker Hughes.

The new company will develop a 20,000 square metre manufacturing facility in the Arzew Industrial Zone in Algeria, which will have the capacity to develop new and perform maintenance of existing oil field equipment. Sonatrach will hold 51 per cent shares in the new joint venture company, with Baker Hughes, owned by the US’ GE, holding the remaining 49 per cent.

The facility is planned to be operational in December 2019, with the new company providing a combined investment of $45m to support the plant and operations. The Arzew facility will provide training for more than 200 engineers during the first seven years of operation.