The Algerian sate owned company, Sonatrach, signed a memorandum of understanding (MoU) with Danish Maersk to establish a framework suitable for prospecting new opportunities between the two companies in upstream projects, reported All Africa.

This agreement was signed by Sonatrach’s Vice President for Exploration and Production, Salah Mekmouche, and, Maersk’s Vice President for Non-Operated Ventures, Carsten Sonne Schmidt, according Ecofin Agency.

This comes as Algeria deals with the decline in world oil prices and has made effort to attract energy investment to help develop new fields and boost existing production.The Algerian government has said it plans to develop existing fields such as Hassi Rmel, Hassi Messaoud, Berkine and El Merk to boost oil and gas production.  Egypt Oil&Gas reported that Sonatrach had awarded Japanese firm JGC Corporate a $1.4b contract to boost production at its largest gas field Hassi Rmel. 

According to Sonatrach’s CEO, Amin Mazouzi , Algeria’s gas output is estimated at 132.2bcm. It is expected to reach 141.3bcm in 2017, 143.9bcm in 2018, 150bcm in 2019 and 165bcm in 2020.