Strengthening internal control in Sonatrach in 2011

ALGIERS- Energy and Mines Minister Youcef Yousfi declared Thursday that internal control of Group Sonatrach will be more and more reinforced in 2011, emphasizing State determination to “lead ruthless fight against all the illegal practices.” While answering to deputy question on the situation experienced by Group Sonatrach Yousfi declared that “the legal pursuits launched against the company officials are not a peculiarity of our country or our sector.” “We regret, however, the charges against these officials, we deem serious. We let justice do its work,” he added. The minister reasserted State resolution to wage, under President of the Republic directives, “ruthless fight against all illegal practice”.

Algeria’s Sonatrach Sets Saharan Crude Export Price at $1.15 Above Brent

Sonatrach, Algeria’s state-run energy company, raised the official January selling price of its Saharan Blend crude oil to a premium of $1.15 a barrel over North Sea Dated Brent, according to an e-mailed company price list. Sonatrach had set its December selling price at a premium of 93 cents over Dated Brent.

8th Session of the Algerian-Korean Task Force opens

ALGIERS-The 8th session of the Algerian-Korean task force opened Wednesday in Algiers so that to intensify bilateral economic cooperation and boost trade exchange between the two countries. This two-day meeting is co-chaired by Minister of Industry, SMEs and investment promotion Mohamed Benmeradi and Korean Deputy-Minister of Economy and knowledge, Kim Jung Gwan.

Sonatrach could become a shareholder of Gas Natural to settle their dispute

Algerian oil company Sonatrach could take up to 10% of Spanish gas group ‘Gas Natural Fenosa’ to resolve the financial dispute between them on the price of gas delivered to Spain, said Tuesday the newspaper Cinco Dias. Gas Natural has responded by issuing a statement assuring that “at that date no agreement has been concluded.”
“We repeat that Gas Natural Fenosa and Sonatrach continue to have negotiations that we hope for a beneficial outcome for both parties, which shall finally determine the controversy,” he said. According to Cinco Dias, citing industry sources, Gas Natural, currently 68% controlled by the oil company Repsol and La Caixa savings bank, is about to realize a capital increase to allow the entry of Sonatrach, in the settlement of money it owes to the latter. The rest of the money owed would be paid in cash and through price revisions in the future. In this case, Gas Natural is challenging the rate increases in natural gas applied from 2007 by Sonatrach, which supplies about a quarter of gas consumed in Spain through the Maghreb-Europe gas pipeline. Algeria is the largest supplier of natural gas for Spain, ahead of Nigeria and Qatar. Gas Natural said in November it would have to retroactively pay $ 1.97 billion (1.43 billion euros) to Sonatrach after the arbitration award in August 2010 in favour of the latter.

Council of Nation: Energy minister announces the creation of a commission to reorganize the Mines sector

ALGIERS- Minister of Energy and Mines Youcef Yousfi announced Thursday in Algiers the creation of a Monitoring Committee, in charge of reorganizing the mining sector where many public enterprises are currently facing management problems. “Many mining companies are facing huge problems, (and) we have created a commission to study the situation on a case by case” basis, Yousfi said during a Council of Nation session devoted to oral questions.

Gas for ammonia plants: Algeria to abide by agreements on prices

ALGIERS- Algeria is to provide gas at local prices for ammonia and urea plants it plans to set up in partnership with Suhail Bahwan Group (Oman) and Orascom Construction Industry (OCI, Egypt), said the CEO of Sonatrach, Nouredine Cherouati. The gas for the two plants will be delivered at local prices in line with gas supply agreements concluded with those partners, Cherouati told APS on the sidelines of the signing of the gas deal. Cherouati denied information published by newspapers according to which Algeria requested upward revision of prices set in the agreements and which are considered as low, especially for products meant for exports it refused to fund.

Coverage of South countries social needs helps energy security in Europe

PALERMO (Italy) – Coverage of deep and legitimate aspirations of in the Southern Mediterranean countries contributes to stability in the region and, ultimately, to energy security of Europe, Minister of Energy and Mines Youcef Yousfi said Friday in Palermo (Italy). “In fact, (with) the presence of rich and diverse raw materials, quality infrastructures, the establishment of industries which provide jobs for youth (the countries of the southern shore) is possible and is today absolutely necessary,” Yousfi said during the study days on the Euro-Mediterranean partnership devoted to the theme of energy. It is important for these countries that Europe “fully influences this process of industrialization and economic diversification.” “Minus oil European investments, mainly in Algeria, remain very limited. In long-term vision, partnership may be developed between beyond the oil sectorAlgeria and Europe, “Yousfi said.

Partenariat euro-méditerranéen: Youcef Yousfi à Palerme

Le ministre de l’Energie et des Mines Youcef Yousfi, participe du 4 au 6 mai à Palerme (Italie) aux journées d’études sur le partenariat euro-méditerranéen, a indiqué mercredi un communiqué du ministère. Ces journées d’études sont organisées par le groupe parlementaire européen du Parti populaire européen (PPE), ajoute la même source. Plusieurs thèmes seront débattus lors de ces journées, dont la crise dans le Monde arabe et l’Afrique du nord, la sécurité et la migration dans la Méditerranée, la coopération judiciaire et la lutte contre la criminalité organisée, le blanchiment d’argent et le trafic de drogue, selon les organisateurs.

Sonatrach-BP-Statoil association entrusts Japan’s JGC to optimize In Amenas gas deposits

ALGIERS – Sonatrach-BP-Statoil Association signed Thursday in Algiers a $213 million contract with the Japanese Group JGC for the optimization of In Amenas gas deposits production. Under its terms, this contract covers the construction of a compression centre of In Amenas gas deposits. Work is expected to start Friday, May 6, according to sources close the project, while receiving full project is scheduled for August 2013.

Former Algerian State Oil Firm Boss Jailed For Corruption

An Algerian court sentenced the former head of state oil giant Sonatrach to jail in a corruption case, The Wall Street Journal reported. The Journal reported that state news agency Algerie Presse Service said that ex-Sonatrach chief executive Mohamed Meziane received a two-year sentence, including one suspended, and a fine equivalent to $7,000. He was suspended from his job in January 2010 amid a probe connected to corruption in the awarding of consultant and security contracts.

Most Sonatrach top managers were sacked along with Meziane after the investigation. Four other defendants in the case, including former downstream head Abdelhafid Feghouli, who had briefly replaced Meziane, also were sentenced to up to a year in jail each. The company issued a new, stronger code of conduct in November 2010 and, rare for the publicity-shy firm, published it online in French and in English. The ruling came as Algeria faces unrest and a reform pledge last month by Algeria’s president, Abdelaziz Bouteflika, is falling short of expectations, according to interviews with political experts by Dow Jones Newswires.