ENI Pays $24M To Settle Saipem’s Corruption File In Algeria

April 5, 2021

Algeria’s gas exports to the largest importer of gas in Italy, Eni, decreased by 21.6% in 2020, compared to 2019, which is a result of reduced consumption in Italy due to the Corona pandemic and the economic closure, at a time when the Italian company confirmed the settlement of the corruption file of its former branch Saipem Algeria by paying $24M to the U.S Securities and Exchange Commission.

In this context, the report of ENI’s financial results for the year 2020 indicates that Algeria’s exports of natural gas, including LNG amounted to 5.22 billion cubic meters.

According to the same document, Algeria’s exports to ENI last year decreased by 1.44 billion cubic meters, compared to the quantities exported in 2019 when they reached 6.66 billion cubic meters.

Algeria’s exports of natural gas, including LNG products, for the company “Eni”, reached 6.8 billion cubic meters, and it was at the level of 12.02 in 2018.

Although Sonatrach’s exports to Eni decreased by 21.56% last year, the national company maintained its position as the second supplier of gas to the Italian energy giant, behind Russia, which had sales of 22.49 billion cubic meters, down by 7.7% compared to last year (-1.87 billion meters).

Libya succeeded Algeria as the third gas supplier for Eni in 2020, with quantities amounting to 4.4 billion cubic meters, a decrease of 21.6% compared to 2019 (-1.42 billion cubic meters).

Italian Oil Giant Eni Confirms Settlement Of The Bribery Probe For $24.5 Million

In another context, the report of ENI’s financial result for the year 2020 which was published in 488 pages, revealed that the US Department of Justice had completed its investigations in the application of the American Foreign Corrupt Practices Act (FCPA) within the framework of the activities of its former branch Saipem in Algeria, and it was announced and notified on October 1, 2019.

“Accordingly Eni concluded in April 2020, a deal that does not require accepting responsibility for the investigation conducted by the US Securities and Exchange Commission (SEC) regarding the Algerian activities of the former subsidiary company Saipem, noting that the agreement stipulated the payment of USD 19.75 million (made in April 2020), which represents Eni’s share of the tax benefits received by Saipem, in addition to an amount representing the compensatory interest estimated at USD 4.75 million.

echoroukonline


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