Sonatrach resolves spat with Repsol & Gas Natural
Arbitration panel says Gassi Touil contract should be terminated
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A dispute between the Spanish supermajor Repsol and its partner Gas Natural and the Algerian state-owned energy giant Sonatrach regarding the Gassi Touil project has been resolved.
An arbitration tribunal ruled that the agreement that was signed by the three companies in 2004 be terminated without any of the involved parties paying compensation.
Sonatrach must also purchase the Spanish companies’ share in the joint venture in charge of the project’s liquefaction process for a price similar to the consortium’s current liquid assets.
“The award does not include reimbursements for investments made by Repsol and Gas Natural in this project. Repsol will write off the relevant assets from its financial statements, with a net impact for the Group of approximately 105 million euros (US$158 million),” a statement released by Repsol said.
The dispute began in 2007 after Repsol and Gas natural announced that Sonatrach had terminated an agreement to develop the Gassi Touil field as well as build a gas liquefaction plant.
The statement from Repsol also said that the ruling would not effect the company’s other Algerian projects.