As Algeria’s Sonatrach and UK-based independent Sunny Hill prepare to battle over the ownership of the 3.5bcm/y Ain Tsila gas project, key EPC contractor Petrofac says it has been reassured that the “project is moving forward.”

Sonatrach earlier this month announced it was terminating Sunny Hill’s 38.25% operating stake in the project alleging that the cash-strapped firm had failed to “comply with its contractual obligations.” Sunny Hill, which is particularly exposed given that Ain Tsila represents its only remaining upstream asset, has vowed to fight the decision (MEES, 16 April). It says it will seek compensation for the loss of its interest which it values “well in excess of US$1bn.” (CONTINUED - 302 WORDS)