Tong Petrotech(SZ:300164) Zheng Quan Shi Bao Wang·2025-10-16 11:22Core Insights - Tongyuan Petroleum has successfully won a bid for a project in Algeria, marking a significant breakthrough in its energy market strategy along the Belt and Road Initiative, with a contract value of approximately $126 million over four years [1][2] Group 1: Project Details - The project involves early production measures and gas compression services at oil and gas fields under Sonatrach, Algeria's national oil company, focusing on enhancing oil and gas output efficiency and ensuring stable domestic energy supply and export [2][3] - Sonatrach is recognized as Africa's largest oil company and ranks 12th globally, providing strong assurance for project execution due to its financial strength and industry reputation [2][3] Group 2: Market Potential - Algeria is the largest natural gas producer in Africa and the second-largest oil producer, with proven oil reserves of 12.2 billion barrels and natural gas reserves of 4.5 trillion cubic meters, positioning it strategically in the global energy market [3][4] - China has become Algeria's primary trading partner, with direct investments reaching $4.5 billion in 2024 across 22 projects, highlighting the growing collaboration between Chinese enterprises and Algeria in the energy sector [3][4] Group 3: Strategic Implications - The successful bid reflects Tongyuan Petroleum's strong technical capabilities and its strategy to extend domestic business operations internationally, particularly in North Africa [4][5] - The project is expected to solidify the company's position in the natural gas processing sector and support its long-term goals of enhancing oil services and developing clean energy [5]