High Compensations ENI to Sonatrach Plus A Contract Worth One Billion Dollars!

The Chairman and CEO of Sonatrach, Amine Mazouzi, said that the national company of hydrocarbons has finally settled the dispute which opposed it with the Italian Energy Company Eni.

Indeed, this contentious issue concerned an oil field called “Seif Fatma” (southern Algeria) exploited by the Italian company for years but without return spin-offs, thus prompting the Algerian side to file complaints and to make an international legal barrage. An action that has proven successful, since the Italian energy company ceased operations, and was compelled then to pay heavy financial compensations to Algeria, without specifying the amount.

The Chairman and CEO added that Eni remains a privileged partner for Sonatrach in which both sides have concluded agreements on joint operation of new oil and gas deposits, totaling a billion dollars, and the extension of certain associations already operating hydrocarbon deposits.

This successful partnership and the extensive cooperation between the two companies will lead to the completion of a huge and ambitious program for the rebirth and revitalization of productive activities because Italy’s Eni which has been operating in Algeria since 1981, and with a production of 100 000 barrels / day, is considered the first foreign producer in Algeria.

Moreover, the Sonatrach CEO was also asked by journalists in attendance about the stalled shale gas issue and replied that the second well was closed and the exploration results are showing promising and encouraging results, stressing by the same token that Algeria is the third or the second country to have the largest shale gas reserves in the world but doesn’t envisage to start its exploitation for the moment.

On the other hand, Mr Mazouzi indicated that Sonatrach’s exports are up with 108 million tonnes of oil equivalent in 2016 compared to 98.1 million tonnes of oil equivalent in 2015, that is an increase of 10%.

In his presentation of the balance sheet and prospects for Sonatrach at a press conference in Algiers, Mr Mazouzi said the results recorded in the first 5 months of 2016 “are in perfect harmony with the ambitious objectives that Sonatrach has set for 2016 and the main concern is geared to spurring the growth at Sonatrach.

For his part, the Downstream Vice Chairman of Sonatrach, Akli Remini, said fuel imports last year cost around $ 2 billion dollars adding that Algeria’s imports would continue until the 2019/2020 horizon so as to enter then the walk-in stage of production in several refineries, notably in Tiaret and Hassi Messaoud.

As for the Galsi project (acronym for pipeline Algeria-Sardinia-Italy) gas pipeline between Algeria and Europe, it is still valid, according to officials of Sonatrach who stated that the Algerian side had carried through the gas pipeline between Hassi R’Mel and El Kala, and the relevant pumping station.