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DMEA TERMINALS & SHIPPING DMEA

The Arzew petrochemical complex was the first plant to make polycarbonate in Algeria (File Photo)

TotalEnergies says it will continue

work on Arzew polypropylene complex

AFRICA TOTALENERGIES (France) said on August 24 takeover by Occidental Petroleum (US) of the
that it would continue working to construct a shares held by Anadarko (US) in the El Merk,
petrochemical plant in Algeria’s Arzew region, Hassi Berkine Sud and Orhoud fields.
denying a report published earlier this week by The decision to move on with the project is
African Intelligence. That souce had claimed the likely to help maintain the strong ties between
French oil group had decided to withdraw from the two countries hours before a visit by French
the construction of the complex. President Emmanuel Macron to the North Afri-
The African Intelligence report pointed to can country that is expected to start on August
mounting concerns for the French group about 25.
the profitability of the complex, rising costs in TotalEnergies holds a 49% stake in the Arzew
the municipality of Arzew and the relatively petrochemical complex, while Sonatrach has the
greater attractiveness of Gulf Co-operation remaining 51%. The two companies had signed
Council (GCC) markets, as well as bureaucratic a partnership agreement to build the plant,
obstacles in Algeria. which will be the first petrochemical complex
The report had cited a letter from TotalEn- in Algeria to produce polycarbonate, in 2018.
ergies to the Algerian national oil company Algeria is Africa’s third-largest producer of
(NOC) Sonatrach complaining that Algiers was crude oil and the world’s ninth-largest producer
not moving quickly enough to push the project of gas. Sonatrach, its state oil firm, signed con-
forward. In the letter, the French super-major tracts worth $4bn last month with a number of
said in it had experienced setbacks as a result foreign firms, including Occidental (US), Eni
of the Algerian government’s general approach (Italy) and TotalEnergies. Those deals will allow
to such matters, particularly citing President the international oil companies (IOCs) to invest
Abdelmajid Tebboune’s refusal to endorse the in the North African state’’s energy sector. ™

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