Reconciliation agreement: Saipem pays USD200 million to Sonatrach

Published on : Wednesday, 14 February 2018 16:44   Read : 508 time(s)
Reconciliation agreement: Saipem pays USD200 million to Sonatrach

ALGIERS- Italian group Saipem will pay about USD 200 million to national oil group Sonatrach by virtue of an agreement signed Wednesday in Algiers for an amicable settlement of disputes between the two sides, said Abdelmoumen Ould Kaddour, the CEO of Sonatrach.

Signed by Sonatrach's chief executive officer and his Saipem's counterpart, Stefano Cao, the agreement settles amicably the disputes between the two sides in relation to four contracts.

The contracts are relating to the setup of a gas liquefaction plant in Arzew (GNL3Z train), the building of three LPG trains, an oil separation unit (LDHP) and condensate production facilities in Hassi Messaoud, oil pipeline building LPG LZ2 24 (line and station) in Hassi R'mel, and the setup of gas and oil production unit in Menzel Ledjmet for the Sonatrach/FCP association (First Calagary Petroleum, Canada).

"We have carried out projects with Saipem which once completed, disputes raised with our Italian partners who made claims about the four contracts (executed in partnership)," Ould Kaddour told reporters on the sidelines of the agreement's signing ceremony.


See also: Sonatrach, Saipem sign agreement on settlement of issues in dispute

Hard negotiations had been undertaken between Sonatrach and Saipem over 18 months to find a solution, before wisdom prevails and an agreement was reached for an amicable settlement of the disputes, he added.

The agreement, according to him, is "very important" as it shows our foreign partners that "Sonatrach is still on its feet, that it is a professional company performing a good work and having good relations with its partners. "

Last modified on Thursday, 15 February 2018 19:26
Reconciliation agreement: Saipem pays USD200 million to Sonatrach