Algeria creates Sonatrach subsidy in London due to encouraging profit margins

Algeria’s Prime Minister Abdelmalek Sellal Thursday said the creation of Sonatrach in London in 1989 was meant to sell gas to Europe. This was due to “encouraging profit margins and deficit in funding and importing capacities.”

Sellal told members of the Council of the Nation that the establishment of Sonatrach’s subsidies came as part of “executing a national strategy to market hydrocarbons abroad.”

“The London subsidy was created to sell gas to Europe due to encouraging profit margins and deficit in funding and importing capacities,” he added.

Asked about the objective of creating a subsidy for Sonatrach in London, he said it operates in hydrocarbons trade sector. “It buys oil products from Sonatrach to market them in the world.”

He added that Sonatrach’s subsidy in London is under the British law. Because of that, it was not annexed to the Algerian Company of Hydrocarbons Maritime Transport. 

“Sonatrach supervises its commercial policy in accordance with objective indicators. Its aim is to gain the largest number of shares in hydrocarbons market,” said the Prime Minister.