After several years when Algeria's relationships with its
actual and potential joint-venture partners in the petrochemicals
sector have been strained, a deal between Sonatrach and Egypt's Orascom
Construction Industries (OCI) suggests that some progress may
still be possible – but the political impediments are still
daunting.
On 27 May, the companies, which are jointventure partners in
the 2 million tonne/year Sorfert Algérie greenfield nitrogen fertiliser
complex, signed an amendment to the shareholders' agreement which OCI
said had agreed “mutually beneficial arrangements, which will
allow for the earliest possible start of production and
commercial activities of the company”.
OCI chief executive Nassef Sawiris described the agreement as a
“milestone”. There are good economic and financial reasons to allow the
project to go forward and the plant to start producing as it
has mostly been financed by Algerian banks and the terms of
the loans are not being met.
For more news and expert analysis about Algeria, please see Algeria Focus and Algeria Politics & Security.
© 2013 Menas Associates
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