Executives: Algeria's Sonatrach, Italy's Saipem Agree To End Disputes
ALGIERS, Feb 14 (Reuters) - Algeria's state energy firm Sonatrach and Italian oil firm Saipem signed an agreement on Wednesday to end their legal disputes over four gas projects, company executives said, paving the way for new projects.
Sonatrach's CEO Abdelmoumen Ould Kaddour said Saipem would pay between $150 million and $200 million to solve the disputes and said the settlements would open the way for a new joint offshore project.
"Saipem is a specialist in the offshore, we may start offshore before the end of this year," Kaddour said, without elaborating on plans for Algeria, an OPEC member and major gas exporter to Europe.
Speaking to reporters in Algiers, Saipem's CEO Stefano Cao told reporters: "It's a big day for Saipem and for me."
Saipem said in December it was ordered to pay Sonatrach $135 million in compensation for the loss of production at a liquefied petroleum gas (LPG) pipeline project in Algeria.
The Italian firm, controlled by oil major Eni and Italian state lender Cassa Depositi e Prestiti, has been involved in three other arbitration proceedings with Sonatrach.
Those three disputes had also been solved as part of the deal signed on Wednesday, executives said, without giving details of what any settlements involved in those cases.
Kaddour, who was appointed last year, has made it a priority to resolve disputes with oil majors which have dented their appetite to invest in the North African country.
Sonatarch and Total said in December they wanted to work on new projects after solving earlier disputes.
Algeria is dependent on oil and gas earnings which provide 60 percent of the state budget and Sonatrach’s performance is key to the health of the economy.
The country has struggled to attract oil investment in the past because of terms oil firms considered unattractive, but low oil prices prompted Sonatrach to adopt a more flexible approach to bilateral talks with foreign partners in 2016.
(Reporting by Lamine Chikhi; Writing by Ulf Laessing; Editing by Edmund Blair)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- USA Oil and Gas Job Figures Jump
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension