Sonatrach scandal: Khelil appoints son as mediator to sell oil in Korea

Investigators in corruption case of Algeria’s energy group Sonatrach found out that former oil minister Chakib Khelil put pressure on the company to sign a contract with Korea National Oil Corporation (KNOC) under the pretext of extending activities to the Asian market.

The contract stipulated to rent a part of KNOC’s storing capacities and use it to store 2 million barrels of Algerian crude oil intended to Korea, Japan, China and India’s markets.

The contract was signed in May 2005. Sonatrach’s then deputy CEO Ali Hached said the “stored quantities will be increased in future.”

The oil was stored for about $200,000 per month. The company’s sales were expected to reach around $100,000 annually, according to figures given by Sonatrach Petroleum Corporation in charge of the group’s international transactions.

First deliveries were shipped in mid-May 2005. Usually, Algerian oil carrier arrives to South Korea after 40 days.

Investigators focused on three points in the case. The oil was stored in South Korea and large crude carriers (VLCC) were rented to carry the oil. The third point consisted in mediators. Of them, there was Khelil’s son. He created a crude oil trade company and got compensation for each stored oil barrel sold.