GK3 Project’s Criminal Proceedings: New Acquittal of Saipem Since 2010

The Italian company Saipem obtained a new acquittal concerning a case in which it had been accused in Algeria since 2010, specifically in the “GK3” gas pipeline project, which connects the east of the country in Koudiet Eddraouche in the city of El-Taref, at a distance of 350 kilometres, thus obtaining the second acquittal out of 3 criminal proceedings.

A statement by the Italian company Saipem, published on its website, on Friday, said: “Concerning the press release of July 27, 2023, Saipem informs that today, Thursday, February 8, 2024, the Court of Appeal of Algiers, following referral by the Supreme Court of July 27, 2023, has fully acquitted Saipem Contracting Algérie S.p.A. in the Sonatrach 1 criminal proceedings ongoing since 2010 in Algeria, about the award of the GK3 contract in 2009”.

Saipem’s statement added; “the text and reasons for today’s decision will be made available in the manner and timeframe provided under local regulations”.

This is the second ruling of its kind in favour of the large Italian engineering and energy company Saipem, in less than a month, after a decision issued in mid-January, which was the rejection by the Algerian Supreme Court of a cassation appeal against the company’s acquittal, issued by the Court of Appeal of the Algerian Judicial Council, in the case of the Roud Ennos Contract (QH), which Saipem had obtained in 2008.

Saipem said at the time that it “received with relief the news of its acquittal by the Algerian Supreme Court,” noting that after the statement issued on January 19 and April 16, 2023, the company knows that after appeals submitted by some other parties (concerned with the case), the Algerian Supreme Court ruled in the criminal case filed in December 2022 against Saipem in connection with its participation in a tender launched in 2008 to submit offers for competitive studies related to the QH Roud Ennos Project in Algeria.

The source explained, “According to the executive part of the decision, as read at the hearing and sent to Saipem by its local lawyers (in Algeria), the Supreme Court, after rejecting all appeals, finally confirmed the acquittal of the company issued by the Court of Appeal in Algiers on April 16, 2023.”

Another case in which the Italian company was accused is still in the hands of the Algerian justice, and it is related to the “GNL 3” liquefied natural gas complex project in Arzew, in Oran (western Algeria).