Sonatrach: The political economy of an Algerian state institution

Middle East Journal

Volumn 53, Issue 1, 1999, Pages

  Entelis, John P ^a  

^a NONE

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EID: 17344388392     PISSN: 00263141     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (48)

1. The New York Times, 20 January 1998.
2. The following are among the most referenced English-language publications concerning Algeria's political history: William B. Quandt, Revolution and Political Leadership: Algeria, 1954-1968 (Cambridge, MA: MIT Press, 1969); John P. Entelis, Algeria: The Revolution Institutionalized (Boulder, CO: Westview Press, 1986); Rachid Tlemcani, State and Revolution in Algeria (Boulder, CO: Westview Press, 1986); John Ruedy, Modern Algeria: The Origins and Development of a Nation (Bloomington: Indiana University Press, 1992); and Helen Chapin Metz, ed., Algeria: A Country Study (Washington, DC: Library of Congress/Federal Research Division, 1994).
3. The following are among the most referenced English-language publications concerning Algeria's political history: William B. Quandt, Revolution and Political Leadership: Algeria, 1954-1968 (Cambridge, MA: MIT Press, 1969); John P. Entelis, Algeria: The Revolution Institutionalized (Boulder, CO: Westview Press, 1986); Rachid Tlemcani, State and Revolution in Algeria (Boulder, CO: Westview Press, 1986); John Ruedy, Modern Algeria: The Origins and Development of a Nation (Bloomington: Indiana University Press, 1992); and Helen Chapin Metz, ed., Algeria: A Country Study (Washington, DC: Library of Congress/Federal Research Division, 1994).
4. The following are among the most referenced English-language publications concerning Algeria's political history: William B. Quandt, Revolution and Political Leadership: Algeria, 1954-1968 (Cambridge, MA: MIT Press, 1969); John P. Entelis, Algeria: The Revolution Institutionalized (Boulder, CO: Westview Press, 1986); Rachid Tlemcani, State and Revolution in Algeria (Boulder, CO: Westview Press, 1986); John Ruedy, Modern Algeria: The Origins and Development of a Nation (Bloomington: Indiana University Press, 1992); and Helen Chapin Metz, ed., Algeria: A Country Study (Washington, DC: Library of Congress/Federal Research Division, 1994).
5. The following are among the most referenced English-language publications concerning Algeria's political history: William B. Quandt, Revolution and Political Leadership: Algeria, 1954-1968 (Cambridge, MA: MIT Press, 1969); John P. Entelis, Algeria: The Revolution Institutionalized (Boulder, CO: Westview Press, 1986); Rachid Tlemcani, State and Revolution in Algeria (Boulder, CO: Westview Press, 1986); John Ruedy, Modern Algeria: The Origins and Development of a Nation (Bloomington: Indiana University Press, 1992); and Helen Chapin Metz, ed., Algeria: A Country Study (Washington, DC: Library of Congress/Federal Research Division, 1994).
6. The following are among the most referenced English-language publications concerning Algeria's political history: William B. Quandt, Revolution and Political Leadership: Algeria, 1954-1968 (Cambridge, MA: MIT Press, 1969); John P. Entelis, Algeria: The Revolution Institutionalized (Boulder, CO: Westview Press, 1986); Rachid Tlemcani, State and Revolution in Algeria (Boulder, CO: Westview Press, 1986); John Ruedy, Modern Algeria: The Origins and Development of a Nation (Bloomington: Indiana University Press, 1992); and Helen Chapin Metz, ed., Algeria: A Country Study (Washington, DC: Library of Congress/Federal Research Division, 1994).
7. Algeria fully nationalized its hydrocarbons industry through a series of separate ordinances, decrees, and presidential edicts in which foreign territorial rights and resource assets were transferred to SONATRACH beginning in mid-1970 and ending in early 1971. See, for example, Ordinance 71-8 of 24 February 1971 in Secrétariat Général du Gouvernement, Journal Officiel de la République Algérienne Démocratique et Populaire (Official Journal of the Popular Democratic Republic of Algeria) (Algiers).
8. Zeroual has announced that he will leave office following elections due in April 1999.
9. The most authoritative account of the killings can be found in a publication jointly sponsored by Amnesty International, Human Rights Watch, International Federation of the Leagues of Human Rights, and Reporters Without Frontiers, Algérie: le livre noir (Algeria: The Black Book) (Paris: La Découverte, 1997).
10. Quandt, Revolution and Political Leadership: Algeria, 1954-1968, p. 11.
11. The New York Times, 23 July 1997; and Petronet: Algeria (available on the Internet), 6 March 1998.
12. The New York Times, 23 July 1997; and Petronet: Algeria (available on the Internet), 6 March 1998.
13. The Economist Intelligence Unit (EIU), Algeria: The Giant Market of North Africa (London: EIU, 1982), p. 55.
14. Ibid., pp. 55-57.
15. Jon Marks, Algeria: Towards Market Socialism (London: Middle East Economic Digest, 1989), p. 45.
16. In 1997, oil production averaged 846,000 barrels per day (bpd); In 1996, natural gas production totaled 65.9 billion cubic meters (bcm). See Algeria: Country Profile 1997-1998 (London: The Economist Intelligence Unit, 1998), pp. 28-33.
17. Condensates are liquid hydrocarbons produced with natural gas which are separated from the gas by cooling and various other means. Condensate is also referred to as natural gasoline and distillate.
18. Algeria: Country Profile 1997-1998, p. 32.
19. Wet gas is a natural gas from a well that contains some of the heavier hydrocarbon molecules which, under surface conditions, form a liquid.
20. See "North African Gas Alters Balance of European Supply," Petroleum Economist (London), March 1997, pp. 28-29.
21. "Algeria May Reorganize Hydrocarbon Industry," Middle East Executive Reports 17, no. 12 (December 1994), p. 5.
22. Ministerial changes, executive appointments and transfers, and biographical profiles have been obtained from the following sources: Jon Marks, The Maghreb Quarterly: Algeria, Libya, Mauritania, Morocco, and Tunisia (London: Middle East Economic Digest), Issues 1-30 (February 1991-August 1998); The Economist Intelligence Unit, Algeria: A Country Report, 1st-4th Quarters (1988-98); The Economist Intelligence Unit, Algeria: Country Profile, Annual, 1987-98; and Middle East Economic Digest, weekly issues, passim, 1988-98.
23. Ministerial changes, executive appointments and transfers, and biographical profiles have been obtained from the following sources: Jon Marks, The Maghreb Quarterly: Algeria, Libya, Mauritania, Morocco, and Tunisia (London: Middle East Economic Digest), Issues 1-30 (February 1991-August 1998); The Economist Intelligence Unit, Algeria: A Country Report, 1st-4th Quarters (1988-98); The Economist Intelligence Unit, Algeria: Country Profile, Annual, 1987-98; and Middle East Economic Digest, weekly issues, passim, 1988-98.
24. Ministerial changes, executive appointments and transfers, and biographical profiles have been obtained from the following sources: Jon Marks, The Maghreb Quarterly: Algeria, Libya, Mauritania, Morocco, and Tunisia (London: Middle East Economic Digest), Issues 1-30 (February 1991-August 1998); The Economist Intelligence Unit, Algeria: A Country Report, 1st-4th Quarters (1988-98); The Economist Intelligence Unit, Algeria: Country Profile, Annual, 1987-98; and Middle East Economic Digest, weekly issues, passim, 1988-98.
25. Ministerial changes, executive appointments and transfers, and biographical profiles have been obtained from the following sources: Jon Marks, The Maghreb Quarterly: Algeria, Libya, Mauritania, Morocco, and Tunisia (London: Middle East Economic Digest), Issues 1-30 (February 1991-August 1998); The Economist Intelligence Unit, Algeria: A Country Report, 1st-4th Quarters (1988-98); The Economist Intelligence Unit, Algeria: Country Profile, Annual, 1987-98; and Middle East Economic Digest, weekly issues, passim, 1988-98.
26. Born on 3 July 1937 in Algiers, Mefti had a master's degree in electrical engineering from Dresden University (ex-East Germany). From 1966 to 1984, he was a project manager, pipeline division head, production director, and finally executive vice president (heading the hydrocarbons division) with SONATRACH. After leaving SONATRACH in 1984, he was senior advisor in the now defunct planning ministry before becoming chairman of Fonds de Participation Mines, Hydrocarbures & Hydraulique in 1988. He also served as a consultant for several international institutions and hydrocarbons sector companies. Mefti survived numerous cabinet reshuffles, on 24 October 1992, 24 November 1992, 3 February 1993, and 10 July 1993. See Marks, The Maghreb Quarterly, no. 7 (August/September 1992), p. 31.
27. Benbitour was then a 47-year-old economist with a Ph.D. from the University of Montreal who had previously worked as a director in both state-owned companies and government ministries. He had represented Algeria at general meetings of the IMF and other financial institutions. Jon Marks noted that at the time of Benbitour's appointment as energy minister, observers were surprised that he had been selected since it was expected that another technocrat trained by SONATRACH would take the job. According to Marks, some believed the move "inspiring" since SONATRACH was to serve as the linchpin of the economy, with a long-established group led by president-director-general Abdelhak Bouhafs staying in place to oversee its transition into a major international company. If Bouhafs had joined the government, some believed, he would have become vulnerable, thus explaining why he refused the job when it was offered. Benbitour meanwhile was expected to use his economics background well while holding hydrocarbons policy on a steady course. See Marks, The Maghreb Quarterly, no. 12 (November 1993), p. 55.
28. Amar Makhloufi was born on 17 November 1943 at El Madher in Batna province. He had studied mathematics and petroleum engineering before joining SONATRACH as an engineer in the late 1960s. He later headed one of the company's chemical subsidiaries, but left the oil industry for a period when he was appointed governor of Annaba province. Makhloufi returned to the energy and industry ministry in the early 1990s and was named, first, director of planning and, later, deputy minister. See Marks, The Maghreb Quarterly, no. 14 (June 1994), p. 59.
29. Companies spun off from SONATRACH in 1980-81 were the following: Entreprise Nationale de Raffinage & de Distribution de Produits Pétroliers (ERDP) [refining and distribution]; Entreprise Nationale de Grands Travaux Pétroliers (EGTP) [oil well projects]; Entreprise Nationale de Plastiques & Caoutchoucs (ENPC) [plastics and rubber]; Entreprise Nationale de Forage (ENAFOR) [drilling]; Entreprise Nationale des Travaux aux Puits (ENTP) [wells]; Entreprise Nationale de Géophysique (ENAGEO) [geophysics]; Entreprise Nationale de Génie Civil & de Bâtiments (GCB) [engineering & construction]; Entreprise Nationale de Services aux Puits (ENSP) [oil well servicing]; and Entreprise Nationale de Canalisations (ENAC) [pipelines].
30. Law 86-14 of 19 August 1986, in Secrétariat Général du Gouvernement, Journal Officiel de la République Algérienne Démocratique et Populaire.
31. "Restructuring Sonatrach," Middle East Executive Reports 14, no. 1 (January 1991), p. 8.
32. Analyses of elite struggles within and between state institutions and civil society can be found in John P. Entelis, "Introduction: State and Society in Transition," in John P. Entelis and Phillip C. Naylor, eds., State and Society in Algeria (Boulder, CO: Westview Press, 1992); John P. Entelis, "Islam, Democracy, and the State: The Reemergence of Authoritarian Politics in Algeria," in John Ruedy, ed., Islamism and Secularism in North Africa (New York: St. Martin's Press, 1994), pp. 219-51; John P. Entelis, "Civil Society and the Authoritarian Temptation in Algerian Politics: Islamic Democracy versus the Centralized State," in Augustus Richard Norton, ed., Civil Society in the Middle East, vol. 2 (Leiden: E.J. Brill, 1996), pp. 45-86; and John P. Entelis, "Political Islam in the Maghreb: The Nonviolent Dimension," in John P. Entelis, ed., Islam, Democracy and the State in North Africa (Bloomington: Indiana University Press, 1997), pp. 43-74.
33. Analyses of elite struggles within and between state institutions and civil society can be found in John P. Entelis, "Introduction: State and Society in Transition," in John P. Entelis and Phillip C. Naylor, eds., State and Society in Algeria (Boulder, CO: Westview Press, 1992); John P. Entelis, "Islam, Democracy, and the State: The Reemergence of Authoritarian Politics in Algeria," in John Ruedy, ed., Islamism and Secularism in North Africa (New York: St. Martin's Press, 1994), pp. 219-51; John P. Entelis, "Civil Society and the Authoritarian Temptation in Algerian Politics: Islamic Democracy versus the Centralized State," in Augustus Richard Norton, ed., Civil Society in the Middle East, vol. 2 (Leiden: E.J. Brill, 1996), pp. 45-86; and John P. Entelis, "Political Islam in the Maghreb: The Nonviolent Dimension," in John P. Entelis, ed., Islam, Democracy and the State in North Africa (Bloomington: Indiana University Press, 1997), pp. 43-74.
34. Analyses of elite struggles within and between state institutions and civil society can be found in John P. Entelis, "Introduction: State and Society in Transition," in John P. Entelis and Phillip C. Naylor, eds., State and Society in Algeria (Boulder, CO: Westview Press, 1992); John P. Entelis, "Islam, Democracy, and the State: The Reemergence of Authoritarian Politics in Algeria," in John Ruedy, ed., Islamism and Secularism in North Africa (New York: St. Martin's Press, 1994), pp. 219-51; John P. Entelis, "Civil Society and the Authoritarian Temptation in Algerian Politics: Islamic Democracy versus the Centralized State," in Augustus Richard Norton, ed., Civil Society in the Middle East, vol. 2 (Leiden: E.J. Brill, 1996), pp. 45-86; and John P. Entelis, "Political Islam in the Maghreb: The Nonviolent Dimension," in John P. Entelis, ed., Islam, Democracy and the State in North Africa (Bloomington: Indiana University Press, 1997), pp. 43-74.
35. Analyses of elite struggles within and between state institutions and civil society can be found in John P. Entelis, "Introduction: State and Society in Transition," in John P. Entelis and Phillip C. Naylor, eds., State and Society in Algeria (Boulder, CO: Westview Press, 1992); John P. Entelis, "Islam, Democracy, and the State: The Reemergence of Authoritarian Politics in Algeria," in John Ruedy, ed., Islamism and Secularism in North Africa (New York: St. Martin's Press, 1994), pp. 219-51; John P. Entelis, "Civil Society and the Authoritarian Temptation in Algerian Politics: Islamic Democracy versus the Centralized State," in Augustus Richard Norton, ed., Civil Society in the Middle East, vol. 2 (Leiden: E.J. Brill, 1996), pp. 45-86; and John P. Entelis, "Political Islam in the Maghreb: The Nonviolent Dimension," in John P. Entelis, ed., Islam, Democracy and the State in North Africa (Bloomington: Indiana University Press, 1997), pp. 43-74.
36. "Algeria-State Giant Tries to Adapt," Financial Times (London), 28 January 1991, p. iv.
37. See "Restructuring SONATRACH," Middle East Executive Reports 14, no. 1 (January 1991), p. 8.
38. "SONATRACH-Fields Development Background," Arab Press Service Organization, APS Review Oil Market Trends 44, no. 3 (23 January 1995), pp. 17-18.
39. Law 91-21 of 4 December 1991 amends the 1986 Hydrocarbon Investment Law 86-14 of 19 August 1986. See Secrétariat Général du Gouvernement, Journal Officiel de la République Algérienne Démocratique et Populaire.
40. See "New Investment Law for Hydrocarbons Area," Middle East Executive Reports 15, no. 2 (February 1992), p. 10.
41. Ibid.
42. "Sonatrach Outlines Strategy," Africa Energy and Mining, 11 February 1998, p. 29.
43. Ibid. See also Martin Webb. "Developing and Marketing New Tranches of Algerian Gas: In Salah Gas Project," The Maghreb Quarterly, no. 30 (August 1998), pp. 41-45.
44. Ibid. See also Martin Webb. "Developing and Marketing New Tranches of Algerian Gas: In Salah Gas Project," The Maghreb Quarterly, no. 30 (August 1998), pp. 41-45.
45. Ibid.
46. Ibid.
47. Middle East Economic Digest, 27 March 1998, p. 18.
48. Ibid.