Algeria’s interim president has sacked Abdelmoumene Ould Kaddour as the CEO of state energy company Sonatrach, state TV said on April 23, creating uncertainty for investors who had started to return to the oil and gas producer.
The interim president, Abdelkader Bensalah, appointed Sonatrach’s head of production and exploration, Rachid Hachichi, to replace Kaddour, state TV reported.
The move casts doubts on whether deals Sonatrach had been working on will go ahead, such as plans to set up a trading joint venture with foreign firms.
Only last week, Kaddour, a U.S.-trained engineer, had said the company would hold talks this week with U.S company Chevron Corp., which last week agreed to buy Anadarko, to discuss a shale gas and oil production partnership
Kaddour had been close to former President Abdelaziz Bouteflika, who had put him in charge of overhauling Sonatrach in March 2017 after years of management upheaval, fraud scandals and red tape had deterred foreign investors.
He is the latest departure of top officials and business leaders who had been close to Bouteflika, who stepped down three weeks ago after mass protests calling for a break with the ruling elite.
Hachichi, the new CEO, had been promoted by Kaddour. Hachichi, 55, has spent most of his career at Sonatrach in the exploration and production business. Analysts said Kaddour paid for his close ties to Bouteflika, not because of the strategy he implemented, which was about to start giving some results.
The North African oil giant is an important source of energy for European states trying to reduce dependence on Russia and it also funds a large part of Algeria’s budget.
Kaddour managed to resolve a number of disputes with fellow oil majors, expanding ties with several companies.
Last year, he shifted the focus on petrochemical deals to reduce the North African country’s fuel imports after buying Exxon Mobil’s Augusta refinery in Sicily, Italy. Sonatrach also last year signed a $1.5 billion deal with France’s Total SA to build a polypropylene plant in Algeria.
Algeria’s oil output is estimated at around 1 million barrels per day, and it produces 135 billion cubic meters of gas per year, according to Sonatrach’s figures.
In March industry sources said talks between Exxon Mobil Corp. and Algeria to develop a natural gas field in the North African country had stalled because of unrest that broke out on Feb. 22.
Mass protests have continued since Boutefliak’s departure as protesters have called for the removal of the elite that has governed Algeria since independence from France in 1962, and the prosecution of people they see as corrupt.
Recommended Reading
Exxon, Chevron Beat 3Q Estimates, Output Boosts Results
2024-11-01 - Oil giants Chevron and Exxon Mobil reported mixed results for the third quarter, with both companies surpassing Wall Street expectations despite facing different challenges.
ConocoPhillips Hits Permian, Eagle Ford Records as Marathon Closing Nears
2024-11-01 - ConocoPhillips anticipates closing its $17.1 billion acquisition of Marathon Oil before year-end, adding assets in the Eagle Ford, the Bakken and the Permian Basin.
Woodside Reports Record Q3 Production, Narrows Guidance for 2024
2024-10-17 - Australia’s Woodside Energy reported record production of 577,000 boe/d in the third quarter of 2024, an 18% increase due to the start of the Sangomar project offshore Senegal. The Aussie company has narrowed its production guidance for 2024 as a result.
Souki’s Saga: How Tellurian Escaped Ruin with ‘The Pause,’ $1.2B Exit
2024-09-11 - President Biden’s LNG pause in January suddenly made Tellurian Inc.’s LNG export permit more valuable. The company’s July sale marked the end of an eight-year saga—particularly the last 16 months, starting with when its co-founder lost his stock, ranch and yacht in a foreclosure.
Quantum’s VanLoh: New ‘Wave’ of Private Equity Investment Unlikely
2024-10-10 - Private equity titan Wil VanLoh, founder of Quantum Capital Group, shares his perspective on the dearth of oil and gas exploration, family office and private equity funding limitations and where M&A is headed next.