Repsol YPF SA and its 30 percent-owned affiliate Gas Natural SDG SA are claiming at least 400 mln usd in damages from Sonatrach over the Algerian state-owned group's decision to kick the Spanish partners out of the Gassi Touil LNG project, Expansion reported, citing unnamed energy sector sources.
When Sonatrach announced its decision to go it alone with the project, it blamed Repsol and Gas Natural for delays and cost overruns in the construction of the gas terminal, due to begin shipping LNG in 2009.
The Spanish companies said it rejected the Algerian move to "illegally appropriate the project," noting that it would appeal the decision via international arbitration.
According to Expansion, the case is now with an arbitration court in Geneva. It noted that Sonatrach has also put in a claim for damages with the United Nations Commission for Commercial Rights.
The original agreement included a penalization clause for some US$24 million if the Gassi Touil project was halted.
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