Italy’s Energy Firm “Saipem” Compelled To Compensate Algeria With 192 Million Euros

The Algerian Supreme Court has officially decided to reject the cassation appeal filed by the Italian energy company “Saipem” against the ruling issued against it by the Court of Appeal in the LNG complex “GNL 3” project in Arzew, which makes it compelled to pay compensation to the national public treasury in the amount of 192 million euros.
In this context, a statement by the Italian company, Saipem, published Thursday on its official website, a copy of which was seen by Echorouk, stated that the Algerian Supreme Court had ruled, in the context of criminal proceedings related to the LNG3 project in Arzew, western Algeria, to reject the reasons for the appeal submitted by it.
All appellants against the decision of the Court of Appeal of Algiers issued on June 28, 2022.
The statement pointed out that Saipem, its branch in Algeria, and the company “Snam Projeti”, the Algeria branch, had received notification of the decision of the Algerian Supreme Court through their local lawyers, rejecting their appeal against the ruling issued last June.
In the same statement, it was stated that Saipem and its subsidiary in Algeria and Sanam Projeti Company in Algeria reserve the right to appeal the decision of the Algerian Supreme Court to any other authorized arbitration body.
According to the new decision of the Algerian Supreme Court, which has become final, Saipem will be compelled to compensate the national public treasury with the amount of 192 million euros.
Saipem was convicted in a corruption case related to the project of a liquefied natural gas plant “GNL3″ in Arzew, in western Oran province, which the Italian company acquired in 2008.
Following its decision to file a cassation appeal against the ruling issued against it last February, “Saipem” indicated at the time that the ruling came due to acts punishable by Algerian law, related to “raising prices when awarding contracts with a public institution of an industrial and commercial nature that benefits from the authority or influence of representatives of this institution” and the “false customs declaration”.
It pointed out that the outcome of the judgment (i.e. after the appeal) will determine how to calculate the value of the fine in the company’s accounts registered on December 31, 2021.