Economics Affairs

London-based Sonatrach subsidiary motivated by encouraging profit margin

APS - 16 February 2017

ALGIERS- Prime Minister Abdelmalek Sellal said Thursday that the creation, in 1989, of a London-based Sonatrach's subsidiary for marketing gas to European countries was motivated by the important profit margin, the�supply�deficit and imports capacity.

In reply to an oral question at the Council of the Nation (upper house of Parliament), read on his behalf by Minister for Relations with Parliament Ghania Eddalia, the premier said the Sonatrach Petrolier Corporation (SPC), a Sonatrach's subsidiary based in the British capital, was created in line with the national strategy for the marketing of oil and gas abroad.�

The London-based facility is mainly intended for marketing and shipping of hydrocarbons, Sellal said in reply to a question on the purpose for the creation of Sonatrach's subsidiary in UK's capital.

"It purchases oil products for Sonatrach to market them worldwide."

The subsidiary's fleet is made up of two giant tanks: Reggane and Djanet, with a capacity of 84,000 m3 each, and three others, namely Adrar, Ghoud Enouss and Hassi Messaoud, with an average capacity reaching 59,000 m3 each.

The SPC also has a crude oil carrier with a capacity of two million barrels, according to the prime minister.