(MENAFN) Algeria's Sonatrach was announced to be set to commence an offshore drilling project both France's Total and Italy's ENI on two locations in the east and west of Algeria early next year.
Sonatrach chief executive Abdelmoumene Ould Kaddour unveiled: "we should start drilling at the beginning of next year."
The statement was made by the chief executive while speaking to reporters on the sidelines of a signing ceremony with Total for a petrochemical plant which is set to have a production capacity of 550,000 tons of polypropylene a year.
The chief of the oil and gas company stressed that "the potential is huge. We have gas in the east around Skikda, and oil in the west around Mostaganem."
Both the Algerian and French companies also reached an agreement to make an investment of USD406 million to increase the production of Tin Fouye Tabankort Sud gas field.
Kaddour stated "our partnership with Total is good and it allows us to implement our long term strategy."