Italian company Saipem is returning to Algeria after a 16-year absence, a significant development revealed in its April 2026 financial report for 2025. This marks a key moment for the company, signaling its re-engagement with the North African nation's burgeoning industrial sector. Saipem's return follows a full legal resolution concerning its prior activities in the country, which had led to its prolonged withdrawal. The company itself confirmed the positive legal outcome, stating in Arabic, "سايبام ترحب بقرار البراءة الكامل الصادر عن محكمة استئناف الجزائر العاصمة," which translates to "Saipem welcomes the full acquittal decision issued by the Algiers Court of Appeal." Saipem further noted, "مشيرة إلى أن محكمة الاستئناف بالجزائر العاصمة أصدرت حكمها في الدرجة الثانية في الدعوى الجنائية التي بدأت في ديسمبر 2022 ضد الشركة فيما يتعلق بمشاركة الأخيرة في مناقصة عام 2008 لدراسات التنافسية تتعلق بمشروع رود النص QH." This statement notes the specific judicial process that culminated in the company's exoneration. Saipem confirmed that an Algerian appeals court extended its acquittal, reiterating, "فقد مددت محكمة استئناف الجزائر قرار تبرئة الشركة من جميع التهم," meaning the Algiers Court of Appeal extended the decision to acquit the company of all charges. The company's re-entry is specifically for the industrial project of integrated phosphate in the east of the country, a major initiative for Algeria's economic diversification.
Phosphate Project Details
The full phosphate project encompasses several key components across Algeria, representing a strategic investment in the nation's natural resources. It includes the establishment of mining facilities in Belad El Hadba, a site key for resource extraction, aiming to tap into Algeria's significant phosphate reserves. Concurrently, the project involves the development of fertilizer production units situated in Oued El Kebrit, aimed at processing the raw materials into marketable products, thereby adding value domestically. This integrated approach seeks to create a strong supply chain from raw material to finished goods.
In addition to the mining and production aspects, significant infrastructure development is planned to support the project's extensive logistical requirements. This includes the development of Annaba port (عنابة) to facilitate the export of the phosphate products to international markets, enhancing Algeria's global trade capabilities. The initiative involves the construction of new railway lines, which will be essential for efficiently transporting raw materials from mining sites to processing plants and subsequently moving finished products to the port for shipping. These integrated components highlight a multifaceted approach to developing Algeria's phosphate industry, from extraction and processing to transportation and export capabilities, ensuring a streamlined and efficient operation. Saipem will participate in the initial detailed engineering phase (FEED) for this ambitious project, bringing its expertise to the foundational stages of its development.
End of Judicial Battles
Saipem's 16-year absence from Algeria stemmed directly from corruption scandals linked to contracts secured in 2008, which cast a long shadow over its operations in the region. The company's protracted judicial battle in Algeria concluded definitively in April 2023, after a duration of 13 years, marking the end of a challenging period. Saipem was fully acquitted in a case concerning a 2008 tender for the 'Rod El-Nass' project, a critical turning point that cleared its name. The Court of Appeal in Algiers not only fully acquitted Saipem but simultaneously cancelled all previous financial penalties that had been imposed, providing complete legal and financial redress.
The company formally welcomed this outcome, stating, "Saipem welcomes the full acquittal decision issued by the Algiers Court of Appeal." Saipem further noted that "the Algiers Court of Appeal issued its second-degree ruling in the criminal case that began in December 2022 against the company regarding its participation in a 2008 tender for competitive studies related to the Rod El-Nass QH project." This specific detail shows the nature of the charges and the thoroughness of the judicial review. Saipem confirmed the Algiers Court of Appeal extended its acquittal from all charges, stating, "The Algiers Court of Appeal extended the decision to acquit the company of all charges." This full acquittal has paved the way for Saipem's re-entry into the Algerian market, allowing it to move forward with new projects free from past legal entanglements.
Financial Remnants and Report
Saipem's financial documentation provides insight into the lingering commercial aspects of its past operations in Algeria. The company's financial report indicates commercial dues in Algerian Dinars within its total commercial debts, valued at approximately 5.025 million Euros. These amounts are likely remnants from two previously frozen bank accounts connected to the 'Sonatrach 2' case, which had been part of the broader legal proceedings. These frozen accounts had held a significant balance of 63 million Euros, noting the scale of the financial implications during the legal dispute. Saipem previously stated, "فقد مددت محكمة استئناف الجزائر قرار تبرئة الشركة من جميع التهم," indicating that the Algiers Court of Appeal extended the decision to acquit the company of all charges, which was key for unfreezing assets and resolving these financial remnants. The financial report reflects the company's current position following its legal resolution and subsequent return to the Algerian market, demonstrating a clearing of its financial obligations and a fresh start.
Company Welcomes Acquittal
Saipem's return targets the industrial project of integrated phosphate in eastern Algeria, a key strategic initiative for the country. The company is set to participate in the initial detailed engineering phase (FEED) for the initiative, which is a key step in the project's development lifecycle. The Algiers Court of Appeal issued its second-instance ruling in the criminal case that began in December 2022, providing the final legal clarity needed for Saipem's return. Saipem stated, "The Algiers Court of Appeal extended the decision to acquit the company of all charges," a declaration that shows the completeness of its exoneration. Significantly, Algerian judicial authorities have not requested additional documents regarding Saipem's 2013 summons related to the 'Sonatrach 2' investigation, indicating that all past legal issues have been thoroughly addressed and resolved. This clear path forward allows Saipem to fully focus on its new commitments in Algeria, contributing to the nation's industrial growth and economic development.
