Saipem pays $200 million bribe to Khelil in return for 35 percent of Galsi project

Italy’s Saipem gave $200 million to Algeria’s former energy minister Chakib Khelil and Sonatrach’s officials in return for gaining the Galsi gas pipeline project, Echorouk has learnt.

Suspects told an examining judge at a court in Algiers the Galsi gas pipeline linking Algeria to Sardinia was granted in an illegal way. The project is divided into four sections : two in land and two others on the sea. Sonatrach announced a national and international call for tender to achieve the land sections which was divided into three parts. Of them, a-351-km- part was called ‘Ain Jasser Tamlouka Koudit Draweche.’ Works in this part were delayed because there was no competition on the tender day on October 7th, 2008, according to sources.

Official documents show that Sonatrach’s studies department chief in charge of the project informed former deputy CEO in charge of pipleines transport that the deal could not be accomplished as there were two competitors only. Saipem won the project in return for offering unjustified advantages to Sonatrach’s officials.

Saipem’s General Director in Algeria Tullio Orsi told an Italian court that he paid bribes on a foreign banking account to Sonatrach’s officials and Khelil. The money was paid on parts until 2010 in order to benefit from 35 percent of the Galsi p*gas pipleine project.

A meeting was held on March 23rd, 2009 to decide about the project third part ‘Ain Jasser/Tamlouka.’ The Italian group offered about $668 million but the concerned commission considered it as well as the offer of a French company as a very large amount. Because of that, both offers were rejected.

According to the same sources, the commission’s president suggested to Sonatrach’s deputy CEO to make an agreement with the Italian group to reduce the offer by 40 percent. Yet, Sonatrach’s officials did not respect the law and negotiated with Saipem.