ALGIERS - Algeria and China have signed several cooperation pacts, including a framework agreement on hydrocarbons, during Chinese President Hu Jintao's state visit which was due to end later Wednesday, officials said.
No details were available about the deal on hydrocarbons, signed Tuesday evening, but officials said the pact was aimed at developing bilateral trade in the sector.
China's runaway economy has seen the country's demand for oil surge, with domestic production unable to keep pace, and Algeria depends on oil and gas exports to fuel its economic growth.
To meet soaring demand, oil imports to China shot up 30 percent, about half from the Middle East and the rest from all over the globe, including Africa, where Algeria and Gabon - both on Hu's itinerary - are key oil exporters to China.
Algeria, meanwhile, is seeking new outlets for its hydrocarbon resources after stepping up production and asking the Organisation of Petroleum Exporting Countries (OPEC) to be allowed to increase it even further.
Algeria currently produces more than one million barrels of oil a day (bpd) and plans to step that up to 1.5 million bpd, despite its OPEC ceiling being 782,000 bpd.
The hydrocarbons sector brought in 24 billion dollars last year, or 96 percent of Algeria's export revenues.
Chinese companies have been steadily increasing their presence in Algeria's oil and gas sector.
Chinese oil company Sinopec signed a 525-million dollar (420-million euro) contract in 2002 to develop the Zarzaitine oil field in Algeria's Sahara desert.
And the China National Oil and Gas Exploration and Development Company is contracted to build an oil refinery near Adrar, also in the Algerian Sahara.
Furthermore, the China National Petroleum Corporation signed a contract worth 350 million dollars in July 2003, for importing oil from Algeria, which made five new oil and gas discoveries in the first half of 2003, according to Energy Minister Shakib Khelil.
Algerian President Abdelaziz Bouteflika said at a dinner Tuesday in Hu's honour that conditions "today are favourable to encourage economic operatos in both our countries to consolidate their relations by setting up partnerships."
Hu's visit, which in addition to Algeria and Gabon took in Egypt, is due to end later Wednesday.
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