Sonatrach Announces Acquisition Of A Refinery And Three Oil Terminals In Italy

Sonatrach is set to purchase the Augusta refinery in Sicily (Italy) and three oil terminals in Italy. The announcement was made this Wednesday, May 9 by Mr. Abdelmoumen Ould Kaddour, CEO of the national hydrocarbons company in an interview with the French newspaper Les Echos. The refinery belonged to giant energy firm Exxon Mobil.
“This acquisition is our first major international project,” said Abdelmoumen Ould Kaddour, who announced Sonatrach’s steady development strategy abroad.
The Augusta refinery will provide an outlet for Algerian crude while upgrading Algeria’s fuel supply. “This will give us more autonomy and will cost less because we will control the entire chain,” stressed Abdelmoumen Ould Kaddour.
The terms of the contract indicate that Sonatrach will work closely with Iso Italiana and ExxonMobil to ensure the actual continuity of the Augusta refinery during and after the transitional period.
Algeria’s consumption of diesel and gasoline will also increase after the acquisition of these three oil terminals.
Sonatrach’s CEO said the acquired Augusta refinery would allow Algeria to cover the country’s gasoline and fuel deficit over the period 2018-2022.
Mr. Abdelmoumen Ould Kaddour also announced by the same token the upcoming launch with the French giant Total of a petrochemical plant in Arzew, in Oran province (western Algeria).
“This will be the first propylene and polypropylene production unit in Algeria,” said Sonatrach’s CEO. The essential will be exported to Europe.
This new major partnership is possible now that the two energy companies have settled their differences (in 2016, Total launched a litigation against the Algerian group).