By Pietro Lombardi

OMV AG and Algeria's state-owned oil company Sonatrach have signed a memorandum of understanding to collaborate in the north African country.

The agreement aims to "identify potential upstream opportunities where the two parties can jointly invest in exploration or development and production projects," the Austrian oil-and-gas company said Thursday.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com; @pietrolombard10