Algeria will carry out its major Gassi Touil gas project without seeking partners, after terminating an agreement with Spanish companies Repsol and Gas Natural, Energy and Mines Minster Chakib Khelil said in remarks published yesterday.
Algerian state energy giant Sonatrach said earlier this month it had ended a 2004 contract with the Spanish firms and wanted reparations for what it called substantial damage due to delays and cost overruns.
“We have lost too much time. Sonatrach will not take partners on the project of Gassi Touil, it will carry it out all by itself,” government-run newspaper El Moudjahid quoted Khelil as saying.
“Sonatrach will take the operations in hand and does not have a partner, and will not take a partner, in this project,” he said in comments reported by independent daily El Watan.
Sonatrach had said its decision to cancel the contracts was taken in accordance with the contract’s provisions and was due to the fact that the two companies had not carried out their obligations “which has resulted in massive delays and cost overruns.”
“We do not choose a partner to delay a project but in order to accelerate its realisation,” Khelil said.