Sonatrach Sells Properties In Mauritania Over Unprofitable Naftec

Sonatrach’s subsidiary Naftec Mauritania SA starts next Wednesday the operation of selling a set of movable real estate properties in Mauritania, to ease the loss and accumulating debts.

About 90 commercial shops in the port of Nouakshot are set for sale, in addition to a service station with a capacity of 36 000 liters and a 1800 m2 land, in accordance with the government decision to withdraw investments from Mauritania.

 Such an operation is part of Sonatrach’s decision to recoup subsidiaries and investments of Naftec. Sonatrach inherited thus 51% stake of Naftec Mauritania SA, 33% stake at the Mauritanian gas distributor (Somagaz), as well as majority stake at 104 service stations in Nouakchott and other cities, in addition to tens of real estate and movable properties.

To recall, Naftec used to control more than 70 percent of the Mauritanian market during its first ten years there, but by 2005, the company has been recording considerable losses, which led to a heavy drop in its shares in the market down to 19 percent. The company could not resist to competition, and could not pay back the accumulating debts to Mauritanian banks estimated at 1.5 billion DZD (about $15 million), forcing the government to withdraw its investment there.