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Update: Tuesday, 6 January 2009    

Skikda natural gas refining unit project frozen

Disagreement on deal clauses not favouring by Sonatrach
Wednesday Apr 04 2007.

Halliburton Kellogg Brown and Root which snatched Mega train project’s bid in Skikda gas refinery has not started works because of negotiations freezing between the US company and the Algerian Sonatrach

and their incapability to come up to a mutually satisfactory solution especially for Sonatrach which refused the array of deal clauses not in line with its interests, an official source told al-Khabar.

According to the same source, Sonatrach is now seeking specialized international partnerships similar to the US Kellogg Brown and Root being at odds with the Algerian party concerning the project already realized in Egypt and sought to be realized in Algeria. The project’s cost is half Skikda refinery rehabilitation project, but the prices have changed given market economy. Our source, however, avoided talking about the rejected clauses, which will result in the project’s freeze until another international company that takes into account mutual interests.

On another side, the sources unveiled that the French Navarra is undertaking scrap recycling of unit 40 that exploded 24th January 2004, yet the source has not revealed Mega train project’s cost as well as the recycling operation.

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