Hydrocarbons law amendment anger Americans

Hydrocarbons law amendment anger Americans

Anadarko may resort to international arbitration

El Khabar, 6 February 2007

Richard Holmes, Chief executive Officer of US Company Anadarko didn’t ruled out a possible resort to international arbitration if negotiations with Algerian Petroleum Company fail. The two oil companies are trying to find an amicable solution for the misunderstanding between them.
The disagreement began after the law on hydrocarbons was amended especially as regard taxes imposed on extraordinary gains. Clauses that “still ambiguous”, says Anadarko CEO explaining, however, international arbitration is not mentioned in any of the articles of partnership contract between the two companies. Speaking to a news conference, the US executive indicated “there is no conflict with Sonatrach”. Meetings are being held between both companies to look for a compromise.
There would be no problem if no tax was imposed on production value with more than 30 dollar/barrel, says François Gautier, General Manager of Anadarko Algeria. If the new measure is enforced on the whole production, a problem will emerge creating litigation with Sonatrach, he stresses.
To a question whether Anadarko is leaving Algeria, the Chief-Executive Officer declares no so important decision has been taken so far. He however implied that Anadarko will re-evaluate its investments as part of the new decree implementation. The company’s production has reached 60 000 barrels/day whereas the average tax is 50%, he reveals.

2007-02-06
By S. Yousfi