Algeria's Sonatrach said it has agreed to a settlement with Italian oil firm Saipem on Wednesday, which ends their legal dispute over four gas projects.
Algeria's Sonatrach said it has agreed to a settlement with Italian oil firm Saipem on Wednesday, which ends their legal dispute over gas projects.
The agreement covers dispute on the construction of a gas liquefaction plant at Arzew (the LNG3Z train), three LPG trains, an oil separation unit (LDHP) with condensate production facilities in Hassi Messaoud, the LPG LZ2 pipeline in Hassi R'Mel and the contract to build a gas and oil production unit on the Menzel Ledjmet field, Sonatrach said in a statement.
Sonatrach's CEO Abdelmoumen Ould Kaddour said Saipem would pay between $150 million and $200 million to solve the disputes and said the settlements would open the way for a new joint offshore project, according to a report by Reuters.
Kaddour, who was appointed last year, has made it a priority to resolve disputes with oil majors which have dented their appetite to invest in the North African country.
Source: Pipeline ME
