EU Commission Authorizes Operation For Sonatrach and Eni in Ain Saleh

The European Commission gave the green light to the Italian company, Eni, to launch operations in the gas field in Ain Saleh (Southern Algeria), after it acquired British Petroleum assets last September, considering that the deal does not raise any concerns about competition.

According to the decision of the European Commission, which was issued on Monday, and which copy is available to Echorouk, it was given the green light, the European Commission announces that it has authorized the creation of a joint venture between Sonatrach, Italian Eni and Norwegian Equinor

according to the European Union’s merger and competition regulations, to establish a joint venture in the Ain Saleh gas project, by the national hydrocarbons company Sonatrach and Eni. Italian and Norwegian Equinor.

This joint venture, In Salah Gas Limited, was jointly created in 1996 by Sonatrach and BP, Equinor, which joined the project in 2004 as a third party, and according to the deal, Eni will replace “BP” as a joint controlling shareholder in this project.

The European Commission concluded that the proposed acquisition would not raise any competition concerns, given that due to their divergent interests (the three companies), Eni, Sonatrach and Equinor are unlikely to succeed in coordinating in the market for the development, production and wholesale and supply of natural gas after a commercial operation, adding that the three companies had neither the ability nor the incentive to engage in foreclosure practices.

The European Commission asserted that this transaction has been verified and examined under normal merger and competition procedures.

This decision would enhance the presence of the Italian energy giant in Algeria after it was the first company with which Sonatrach signed a contract within the framework of the new hydrocarbons law, and the first company to embark on production in a joint venture with Sonatrach that it obtained under the same law.