Sonatrach’s former CEO: Algeria ordered Schlumberger deal to protect oil from Libya

Sonatrach’s former CEO Mohamed Meziane Wednesday told the judge of a court in Algiers a deal was sealed with Schlumberger upon political orders from the energy and foreign ministries to preserve oil well next to Libyan borders.

The trial in details

Meziane was the first suspect auditioned by Judge Abderrezak Bensalem.

Judge: Meziane Mohamed, you are accused of violating legislation. You have been introduced to court upon a decision from an examining judge.

Meziane: Sir, can I talk about my position before talking about the accusation?

Judge: go ahead. You have a fair trial.

I had held the position of Sonatrach’s General Director in 2003-2010. I was also the chairman of directors’ board. Yet, you have to know that the directors’ board included 13 members. Of them, there were customs director and the Algeria Bank’s representative. After I had been dismissed, Faghouli was succeeded me followed by Cherouati. Members of the directors’’ board were supposed to be changed.  

Judge: names of members of the directors’ board were taken from Sonatrach’s commercial register.

Meziane: Let me explain things about oil and gas refining unit project in Adrar between the Algerian and Libyan borders. Sonatrach’s technical staff found out gas leaks. After discussion and upon order from former energy and foreign ministers, a decision was made to hold talks with Libyans for a political and economic solution. Yet, no solution was reached. The energy minister decided to achieve oil and gas treatment unity. We contacted two companies including Schlumberger. The latter won the deal.

Judge: after you had approved the project, who followed up it?

Meziane: resource activity department was in charge of following the smooth running of the project.

Judge: what about choosing and studying the project?

There are specialized departments. They sent the relevant file to production department then to the specialized commission which approved the project.

Judge: were deadlines and conditions respected in the execution of the contract?

In 2010-2011, I was banned from Sonatrach. I have no idea about what happened.

Attorney General: when you concluded the contract with Sonatrach, did you agree to pay all the company’s expenses?

Meziane: everything was determined in the contract.