Petro-Canada has suspended negotiations with Algeria’s state-owned Sonatrach oil company, concerning the development of a regional gas project in Algeria that would have included 23 gas fields producing a total of up to 400 million cubic feet a day.
Announcing the development at an energy conference in New York, Petro-Canada vice-president Norm McIntyre said that the two sides were not able to find common ground after conducting two years’ worth of negotiations.
Saying that Petro-Canada’s relationship with Sonatrach remained good, McIntyre would provide details as to why the negotiations had been broken off talks. However, according to Reuters, he did reveal that talks were disturbed by policy shifts in Algeria and changes in personnel during the extended discussions between the two companies.
He discounted the charge that this suspension of the talks is simply a negotiating ploy. Unless the other side is prepared to make real concession, further progress appears unlikely, he said.
Petro-Canada is already invested in the Algerian oil sector, operating a small oil field in Algeria called Tamadenet producing 4,000-6,000 barrels a day. – (Albawaba-MEBG)
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