Spain’s Repsol strengthens its presence in Algeria

The political crisis between Algeria and Spain affected economic exchanges between the two countries, but excluded the energy sector. A few months after announcing a contract between Sonatrach and Repsol, the Spanish oil company is strengthening its presence in Algeria through the actual acquisition of the assets of an Italian company.

Edison RSP SPA, a Milan-based Italian company specializing in the production and sale of electricity, gas and crude oil, signed agreements in May and June 2022 to sell its stake in the Reggane Nord gas field with Repsol Companies (Spain). ) and Wintershall Dea (Germany). The Milanese company has just announced that the Algerian authorities have approved these agreements, which have officially entered into force.

The gas produced by the Reggane Nord field is sold entirely to Sonatrach under a long-term contract. Edison owned 11.25% there, which it sold for 6.75% to Repsol and 4.50% to Wintershall Dea. The total value of the deal amounts to 100 million euros, and has not changed, as is the case with the terms and conditions of the agreements, according to the same source.

Algeria – Spain: Energy affected by the political crisis

Edison, which is owned by Electricité de France (EDF), explains that completing this sale is part of its strategy.” Focus on the energy transition and securing the supply of Italian energy markets », whose investments are scheduled to reach more than 10 billion euros between 2023 and 2030.

Last June, Sonatrach signed a contract worth $800 million with Spain’s Repsol and Indonesia’s Pertamina to exploit Area 405A in the vicinity of the Jamat House. This is a type of contract.” Production sharing » Signed under the auspices of the Hydrocarbons Law of 2019.

Algeria and the Spanish government have been experiencing a crisis since March 2022 after Madrid changed its position on the Western Sahara issue and provided support for Moroccan proposals. Trade between the two countries has almost stopped since June of the same year. Only fuel deliveries, especially gas, continued normally, after Algeria promised to fulfill all its contractual obligations.

In addition to energy, Algeria did not sever its relations with Spain in the field of security cooperation. President Abdelmadjid Tebboune has repeatedly said that Algeria has good relations with the Spanish Royal Palace, but the problem lies with the government of the socialist Pedro Sanchez because of its support for Morocco in the Western Sahara conflict.

On the same topic:

Spain: Uncertainty about the outcome of the crisis with Algeria