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Algerian state petroleum firm Sonatrach and French engineering contractor TechnipFMC have settled a dispute over a terminated contract for rehabilitating the Algiers refinery and have ended arbitration proceedings immediately.
In 2010 Sonatrach awarded an AD67.9bn (then $908mn) lump-sum turnkey contract to what was then Technip for design, procurement, construction and start-up services for an upgrade of the 2.7mn tons/year (58,100 b/d) refinery that was scheduled to take 38 months. Sonatrach subsequently canceled the contract and the companies sought arbitration. However, a statement from TechnipFMC this week quotes Sonatrach as saying the definitive agreement “ends a litigation that was detrimental to both parties.” (CONTINUED - 395 WORDS)