Algeria freezes Saipem’s 79 million euros

Algerian authorities froze 79 million euros funds of Italian oil service group Saipem as part of investigations into suspicious transactions with national energy group Sonatrach, Reuters reported on Thursday citing the foreign company.

Saipem said in its annual report that a number of current accounts belonging to its Saipem Contracting Algerie unit had been frozen after a probe had been launched in 2010, according to Reuters.

“Some of these were subsequently unfrozen, though two in Algerian dinar, for a total of 79 million euros at Jan. 25, 2013, remain blocked, » said the report.

It added that a search of the premises of Saipem Contracting Algerie had been carried out on March 24.

Algerian judges and security officers who went to Algeria as part of the investigation did not find any evidence of the involvment of Saipem and Eni’s directors in the corruption case.

Justice did not summoned former energy minister Chakib Khelil who left Algeria. Security forces searched his house in Algiers while they did not issue any arrest warrant against him.

‘Tout sur l’Algérie’ website reported on Thursday that Khelil said in a letter to security forces that he is ready to appear in court as he will come back to Algeria in the next few days.

This comes as people who were questioned by judges as part of the Sonatrach corruption case did not mention his name.

Earlier in December former Saipem CEO Pietro Franco Tali and Eni CFO Alessandro Bernini resigned after an investigation had opened into alleged corruption in Algeria. Investigations showed that Saipem gave $200 million to Khelil and Sonatrach’s officials in return for gaining the Galsi gas pipeline project.

Eni which owns 43 percent of Saipem has operated in Algeria since 1981.