Statement: from Repsol
Trio settle Gassi Touil row
A row between Spanish outfits Repsol and Gas Natural and Algeria's state-run producer Sonatrach over the Gassi Touil project has been resolved.
The International Court of Arbitration award announced today resolved the dispute between Repsol-Gas Natural and Sonatrach over the termination of the agreement for the Gassi Touil project which had been awarded in 2004.
Repsol issued a statement saying the tribunal declared the Gassi Touil agreement terminated in accordance with its terms, without any party having to compensate the other for the termination.
The award also orders Sonatrach to buy 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, to the tune of about €105 million ($158 million).
The dispute began in July 2007 when Sonatrach unilaterally terminated a joint venture to develop the Gassi Touil field and build a gas liquefaction plant to export the gas.
Repsol and Gas Natural both said the dispute's resolution does not affect their business in Algeria.
Nevertheless, both companies are studying the content of the arbitration award to determine if any other action related to this process is necessary.
Repsol has exploration and production rights in five blocks in Algeria's southern desert and is producing oil and gas from two of them, according to the company's website.