This is how Khelil injected Sonatrach’s incomes into Saipem’s gains

Italy’s oil and gas contractor Saipem emerged in the Algerian market during Chakib Khelil’s term as energy minister. It became a “spoilt child” and won deals and projects in just three years.

The dissolution of US’s Brown and Root Condor Spa (BRC) following a terrorist attack on it in 2006 in Algiers is a principal factor behind the emergence of Saipem.

Eni’s subsidy won eight oil and gas projects worth $11 billion between 2006 and 2009 while BRC could not meet $30 million-project -orders in the Algerian market.

Saipem continued growing in Algeria’s market in record time with the help of Khelil and his nephew Reda Hameche who is on the run in Switzerand. He was chief of staff of Sonatrach’s CEO Mohamed Meziane.

Scandals at Sonatrach had blown up one by one since late December 2009. All the corruption cases emerged during Khelil’s term and were directly linked to deals concluded with many oil companies at that time.

In February 2011, Italian justice started investigating into Saipem’s activities in Algeria. Khelil’s name appeared and his meetings with multinational companies officials were unveiled.

Late in 2012, the situation became clearer and the close relationship between Khelil and those multinational companies officials was discovered early this year. They played a decisive role in Saipem’s winning of $11 billion-contracts in just three years.

Yet, Khelil was not summoned in the Sonatrach scandal while he was appointed by a Canadian oil company as adviser in the end of 2012. According to Canadian sources, the company plans to enter the Algerian market to win large deals with the help of Khelil.