ALGIERS--Algeria's energy minister said on Monday he would seek a "good compromise" when asked about his earlier comments that Algiers would block a plan by France's Total to buy Anadarko's Algerian assets.
Energy minister Mohamed Arkab told reporters on the sidelines of a conference on May 26 that Algeria will block Total from acquiring Anadarko's assets in Algeria.
Occidental Petroleum has agreed to sell Anadarko Petroleum Corporation's assets in Algeria, Ghana, Mozambique and South Africa to Total for $8.8 billion if the U.S. oil company succeeds in completing its plan to take over Anadarko.
"Our ministry has contacted Anadarko to get explanations on this information, but so far we got no answer," Arkab said.
"It means there is no contract between Total and Anadarko ...We have good relations with Anadarko and we will do the utmost to preserve Algeria's interests, including using our pre-emption right to block the sale," the minister said.
On Monday, he seemed to backtrack. "Sonatrach will seek a good compromise," he said about the acquisition, speaking during a visit to Tindouf gas field, 1,700 km south west of Algiers. He did not elaborate.
Anadarko holdings in Algeria represent about 260,000 barrels of oil per day, more than 25% of the country's crude production estimated at 1 million barrels per day.
There was no immediate comment from Total or Anadarko.
In 2018, Algeria's state energy firm Sonatrach and Total signed new agreements, including a contract to develop the Erg Issouane gas field and plans to create a joint venture.
Total said at the time that the development represented an investment of $400 million. It said it would also form a joint venture company called STEP for a joint petrochemical project in Arzew, western Algeria.
But the relationship between Algeria and France remains scarred by the trauma of the 1954-1962 independence war in which the North African country broke with France. Hundreds of thousands of Algerians were killed and both sides used torture.
Recommended Reading
Air Products Sees $15B Hydrogen, Energy Transition Project Backlog
2024-02-07 - Pennsylvania-headquartered Air Products has eight hydrogen projects underway and is targeting an IRR of more than 10%.
M4E Lithium Closes Funding for Brazilian Lithium Exploration
2024-03-15 - M4E’s financing package includes an equity investment, a royalty purchase and an option for a strategic offtake agreement.
Bobby Tudor on Capital Access and Oil, Gas Participation in the Energy Transition
2024-04-05 - Bobby Tudor, the founder and CEO of Artemis Energy Partners, says while public companies are generating cash, private equity firms in the upstream business are facing more difficulties raising new funds, in this Hart Energy Exclusive interview.
Air Liquide Eyes More Investments as Backlog Grows to $4.8B
2024-02-22 - Air Liquide reported a net profit of €3.08 billion ($US3.33 billion) for 2023, up more than 11% compared to 2022.
Humble Midstream II, Quantum Capital Form Partnership for Infrastructure Projects
2024-01-30 - Humble Midstream II Partners and Quantum Capital Group’s partnership will promote a focus on energy transition infrastructure.