Algerian energy giant Sonatrach on Wednesday signed two contracts with the Russian transport company Transneft over security of liquid fuel transport for the Sonatrach pipeline transport, APS News Agency reported.

The first contract, with a period of 18 months, is worth 1.16 million euros (1.32 million U.S. dollars), while the second, due to run for six months, is worth 331,709 euros.

Abdelmoumen Oul Kaddour, Sonatrach's CEO, said the group's new strategy focuses on "developing profitable partnerships with foreign companies, in order to acquire know-how and new technology.

"We are hoping that these two contracts are just the beginning of a long history of partnership between Sonatrach and Transneft," he noted.