Germany's Wintershall Dea -- already active in Algeria's upstream -- has become the latest international producer to sign a memorandum of understanding with state-owned Sonatrach to allow for talks on new joint upstream opportunities.

The MOU covers potential for exploration and production cooperation both in Algeria and abroad, Sonatrach said in a statement Aug. 17.

Wintershall Dea holds a stake in the major Reggane Nord gas project that started up in 2017.

"Wintershall Dea is well established in Algeria through our participation in the Reggane Nord project," Wintershall Dea Chief Operating Officer Dawn Summers said in a separate statement.

"In 2020 we are evaluating a potential increase of activities in the country, and this MOU is an important step forward," Summers said.

The German company said the MOU had a term of two years, effective from July 1, 2020.

"It will provide a framework for Wintershall Dea to identify and potentially access additional business opportunities in the country," it said.