Sonatrach estimates $44m losses after In Amenas attack

Experts say replacing damaged equipment at In Amenas is likely to escalate costs Algeria's national oil and gas company Sonatrach has estimated its total losses during the four-day In Amenas gas facility hostage crisis at $44 million. A senior source at the company said that the Tiguentourine plant is responsible for 12% of national production, equivalent to 50,000 barrels of oil per day. Annual revenue at the complex which produces 9 billion cubic metres of gas annually is around $4bn dollars. The source explained that damage to the gas processing plant during the terrorist attack is likely to cost the company more than the $44m estimate, because the plant has the capacity to produce 25 million cubic metres of gas on a daily basis.
The impact of the attack is also expected to spread to Sonatrach's In Salah site. Sources believe that replacing the equipment would require stopping the drilling operations at both the In Amenas and In Salah sites, as workers rotate across the two facilities.
Officials fear that the departure of Japanese company JGC from running the pumping station at In Amenas, and British company Petrofac from developing the In Salah plant will discourage handling companies from working in Algeria.
Economists think that despite the terrorist attack, the oil companies stationed in Algeria will not leave the country because of their huge investments in the south and potential for profit.