Algeria’s NOC Sonatrach and Spanish E&P major Repsol have signed an agreement to consolidate their partnership in energy exploration and amicably end their differences, according to a report by Algeria’s state news agency APS.
Repsol sought arbitration last year against Sonatrach over changes made to profit-sharing terms about a decade earlier, Algerian and French media had reported.
‘This accord allows the two companies to make the most of their relationship though continuing joint exploration operations and the amicable settling of differences’, the statement on APS said.
Sonatrach is taking a more flexible approach to bilateral deals with foreign partners, as the North African country looks to increase production.
In May, France’s Total signed a new deal with Sonatrach to expand their partnership on new upstream projects, set a new contractual framework for the Timimoun project and continue joint operations at the Tin Fouye Tebenkort (TFT) gas field.
Three years of low oil prices have weighed on the economy of Algeria, which relies on energy for 60% of its revenue.
