French oil group Total has got the nod of approval from the European Union (EU) to form a joint venture in Algeria with state-owned gas giant Sonatrach. The European Commission has granted approval to the deal under simplified procedure which applies to cases the commission believes do not pose competition concerns. Total announced its joint venture with Sonatrach last year.
The joint venture, to be located in Arzew in eastern Algeria, will produce polyethylene and ethylene. Output from the plant will meet demand from domestic as well as export markets. Investment outlay of 3 bln euros (US$4.48 bln) will be contributed by Total and Sonatrach in 51:49 ratio.