Algerian oil and gas giant Sonatrach cancels a contract with British company Sunny Hill Energy to operate a gas field in southern Algeria. Sunny Hill, who judges that “Sonatrach acted in an aggressive and irrational way”, demands reparations of a billion dollars, in court!
Headwinds for Sonatrach. While the Algerian public oil and gas giant has canceled a contract with Sunny Hill Energy to operate a gas field in southern Algeria, the rejected British group is demanding $ 1 billion in damages in court. Sonatrach has terminated the contract with Sunny Hill Energy to operate in partnership with this site which is located 1,100 kilometers south-east of Algiers and in which the British company says it has invested hundreds of millions of dollars, according to a press release. Sunny Hill Energy, which owns a 38.25% stake in the Ain Tsila project, says the oil giant has offered no financial compensation.
The British company is contesting the decision and intends to take legal action to recover the lost amounts, or $ 1 billion (835 million euros) according to its estimates. “Sonatrach acted aggressively and irrational. This expropriation is the type of gesture expected from Venezuela from Hugo Chavez but not from a country like Algeria,” said Angelo Moskov, chairman of Sunny Hill, quoted in the press release. He says this measure runs counter to Algeria’s efforts to attract foreign investment.
