Saturday, July 2, 2016

Total contests the sharing of oil profits in Algeria – RFI

The dispute dates back to 2006. That year, Alger has rewritten the rules of the game. To better enjoy rising oil prices , it created a tax on said profits “exceptional” made by foreign companies.

Specifically, when barrel exceeds $ 30 , the majors have to pay an additional tax of 5 to 50% production value. Now, according to oil companies cited by Le Monde , the contracts signed with Sonatrach, the Algerian state oil company, were to ensure their fiscal stability.

Total have said many tried to find a friendly settlement, but due to achieve this, the oil company has therefore decided to request the Geneva international Court of arbitration to decide. A procedure that Patrick Pouyanné, CEO of Total, relativized ensuring that it is not exceptional. But a procedure that the group hopes lucrative. According to Le Monde , Total wants to get together with Repsol, a compensation of several hundred million euros.

It should be said that there is a precedent. Two American and Danish groups achieved a total of $ 5 billion in 2012. Compensation granted by Algeria as companies would win the arbitration. And Patrick Pouyanné claims that his group acted independently, without intervention of the French government.

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