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China and Algeria signed here on Monday a contract on the prospecting of oil and natural gas in Algeria.

Representatives from China National Petroleum Corporation (CNPC) and Algerian state-owned hydrocarbons company Sonatrach signed the contract. Chinese Ambassador to Algeria Wang Wangsheng and Algeria 's Minister for Energy and Mining Chakib Khelil attended the signing ceremony.

It is the first time for a Chinese company to prospect for oil and natural gas in Algeria.

Under the contract, the CNPC will invest about 31 million US dollars in the next three years to prospect for oil and natural gas in Algeria. If the prospecting succeeds, the CNPC will be granted a certain share of the oil and gas.

The CNPC gained the contract after beating several other giant international oil companies.

At the ceremony, Khelil praised the effective cooperation between Algeria and China in the field of oil and natural gas. He also valued highly the experience and technology held by China and expected the two countries to further strengthen their cooperation.

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