Algerians eye stake in Spanish gas firm

5th September 2007, Comments 0 comments

5 September 2007, MADRID- (AFP) - Algerian state-owned energy company Sonatrach has looked into the possibility of acquiring Spanish bank Santander's 30-percent stake in Spain's number two oil and gas company Cepsa, daily newspaper El Mundo reported Wednesday.

5 September 2007

MADRID- (AFP) - Algerian state-owned energy company Sonatrach has looked into the possibility of acquiring Spanish bank Santander's 30-percent stake in Spain's number two oil and gas company Cepsa, daily newspaper El Mundo reported Wednesday.

"Sonatrach has made a preliminary approach to Santander to ask about its plans regarding the sale of Cepsa," the newspaper wrote without citing sources.

Santander, Spain's biggest bank, refused to comment on the report. Earlier this year the bank said it intended to sell its stake in Cepsa which is estimated to be worth some 5.8 billion euros (7.9 billion US dollars).

Santander owns 30.68 percent of Cepsa while French oil giant Total owns a 48.83-percent stake in the firm, which posted a turnover of 20.7 billion euros last year.

Earlier this week Sonatrach rescinded a natural gas contract signed in 2004 with Spanish firms Gas Natural and Repsol YPF to develop gas resources in the Gassi Touil region in the east of Algeria.

Repsol had a 48-percent participation in the project, with Gas Natural holding 32 percent and Sonatrach controlling 20 percent.

Algeria is Spain's top gas supplier.

[Copyright AFP with Expatica]

Subject: Spanish news

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