Foreign oil firms in Algeria refuse to pay additional windfall taxes on their revenues

According to reliable sources from the Algerian energy Ministry, the foreign oil firms present in Algeria are refusing to pay additional windfall taxes on their sizable revenues accrued from the steep hike in oil prices over the past few months.

A case in point is the US Anadarko Company which has refused to comply arguing that the additional windfall tax issue should be brought before an international arbitration tribunal for a ruling on the matter.

The Algerian energy and mines Minister Chakib Khelil had earlier asserted that the recourse to international arbitration was only “a loss of time and moneyâ€Â, as he put it.

The same sources also said that these foreign energy firms had already compensated their financial investments introduced in Algeria and were now riding on massive profits.

With the price of an oil barrel set at about 110 dollars, these companies are said to have garnered huge spin-offs.

In an attempt to clear the air, a senior Anadarko executive said that his company would continue its partnership with Sonatrach stressing that Algeria remained for the US Company a pivotal country in the region.

He also denied reports that Anadarko was intent on quitting Algeria .