Versalis, a subsidiary of Italian energy giant Eni, has signed a Memorandum of Understanding (MoU) with Sonatrach to carry out feasibility studies for a gas-based integrated petrochemical complex to be built in Algeria.

The deal follows the cooperation agreement signed by Eni and the Algerian state-owned group last November. At that time, the Italian oil and gas group’s CEO, Claudio Descalzi, said: “Thanks to these agreements Eni, which was the first international oil company to enter Algeria, confirms its willingness not only to consolidate its presence in the oil and gas sector, but also to promote sustainable development of the country through renewable energy and  technology transfer.”

Eni, which has spent $11.5 billion on Algerian hydrocarbons projects between 2010 and 2015, said the MoU provides for studies that aim to upgrade hydrocarbons into petrochemical products through the development of one or a few world-scale industrial petrochemical facilities.

The Rome-headquartered group added that the agreement represents an opportunity for Versalis to collaborate with an integrated oil corporation and offer its industrial experience in managing large petrochemical plants and access to its proprietary technologies within the framework of strategic joint projects. Further details on the proposed complex were not disclosed.

In December last year, Sonatrach finalized an agreement with French oil and gas group Total to carry out a feasibility study for a petrochemicals complex. The Algerian company said last month it was in talks with international partners to form five petrochemical joint ventures.