Algeria -based Sonatrach and GE have signed a Memorandum of Understanding to launch a joint venture to manufacture equipment used in the oil and gas industry, a report said.

The company aims to produce drilling and production equipment, and provide training and services in the oil sector, the Ennhar Online report added, citing the APS news agency.

Hydrocarbons bring to Algeria more than 95 per cent of its external revenues and contribute 60 per cent to the state budget.

The new entity will be owned 51 per cent by Sonatrach and GE will claim the balance.