ALGIERS, ALGERIA - March 23, 2006 : -- Sonatrach, Sonelgaz and General Electric have announced plans to expand Algesco SA, a gas turbine services joint venture based in Hassi R'Mel that serves the oil and gas and power generation industries.
The announcement was made during a celebration attended by his Excellence, Dr. Chakib Khelil, the Algerian Minister of Energy and Mines; and various other executives from the oil and gas, power and water industries.
The move will increase GE's participation in Algesco from 48 to 52 percent. Algesco is a joint venture company established in 1993, specializing in services for gas turbines installed in the oil and gas and power generation industries.
Sonatrach, the Algerian national oil and gas company, and Sonelgaz, the state-owned utility for electricity and natural gas, will continue to play key roles in Algesco, with each maintaining 24% ownership shares.
The agreement is designed to increase the current capabilities of Algesco, and will include the construction of a new service center to be located in the Hassi Messaoud area of Algeria. The center will offer expanded services such as restoring gas turbine components to their original conditions, restoring the original physical features of materials, and extending the expected life of gas turbine components.
The new facility will serve not only gas turbines but also compressors, pumps and other equipment installed in the oil and gas and power generation industries.
"New skills will be introduced that will benefit Algerian industry, with training provided not only in Algeria but also in locations such as Italy, France and the United States," said Claudi Santiago, president of GE's Oil & Gas business.
"This move confirms GE's commitment to invest resources and effort in Algeria, one of the leading oil and gas producing countries in Africa," added Santiago. "GE has been active in the Algerian energy sector since 1950, and is eager to continue developing skilled local talent to meet the expectations of our customers in the region. In addition to the new service center, we will continue to leverage the training center in Hassi R'Mel that we created jointly with Sonatrach in 2000."
Sonatrach and Sonelgaz will continue to contribute "their broad knowledge of the oil and gas and power generation industries to the joint venture," Santiago noted. "The move also provides them with the flexibility to focus on new competencies and technologies for their core businesses, while maintaining and strengthening all synergies with their existing facilities in Algeria."
GE has a large installed fleet of gas turbines in Algeria, totaling more than 350 machines serving both the oil and gas and power generation industries.
Howard Masto
Masto Public Relations
[email protected]
1-518-786-6488
Ken Darling
Masto Public Relations
[email protected]
1-518-786-6488