Algeria: Sonatrach Terminates Sunny Hill Energy Contract
Sonatrach, Algeria’s national oil company, has terminated the U.K.-based Sunny Hill Energy’s contract for the Ain Tsila gas field development in Algeria. Citing a failure to fulfil contractual obligations, Sonatrach has seized the privately held energy investment company’s 38.25% stake in the project, offering no compensation in the process.
Sunny Hill Energy holds a participating interest in the project through its wholly owned subsidiary, Petroceltic Ain Tsila. With the company investing hundreds of millions of dollars in the project, and disputing that the seizure is legally invalid, Sunny Hill Energy has declared that it will pursue all legal recourse for compensation, estimated at $1 billion.
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