Schlumberger and NOV win Sonatrach well contracts
Schlumberger was awarded a $25mn contract for technical assistance and NOV has won a $45mn contract
Algerian state energy company Sonatrach has awarded US oil service firms Schlumberger and National Oilwell Varco (NOV) contracts for managing well operations, Reuters reported citing a Sonatrach document.
Schlumberger was awarded a $25mn contract for technical assistance and NOV has won a $45mn contract after being pre-selected in 2015 by Sonatrach's drilling division, the document said.
US service companies Halliburton and Baker Hughes did not get any agreements in this selection, according to the document.
OPEC member Algeria is trying to draw more foreign investors to help bolster oil and gas production. This has stagnated for years because of reliance on mature fields and a lack of investment in new production.
American companies are competing in the estimated $2bn Algerian energy service market with Chinese companies Sinopec and CNPC whose service affiliates have become more active in the North African country in recent years.
With oil prices down, Algeria's government has suspended some infrastructure projects and cut budget spending, but Sonatrach says it will continue with its ambitious investment plan to increase oil and gas production.