Madrid is to host a summit with Algiers in 2008 in an effort to resolve a dispute between Spanish firms Repsol and Gas Natural, and Algeria's state-owned energy company Sonatrach over a failed gas project.
The two Spanish companies are claiming at least $400m from their former partner in the estimated $6.8bn Gassi Touil integrated liquefied natural gas deal.
Sonatrach cancelled the involvement of the Spanish team due to substantial delays and cost over-runs. The project was due for delivery in 2009, but it had become clear that it would not be completed before 2012.
Sonatrach has also lodged a claim for compensation against Repsol and Gas Natural with the UN Commission for Commercial Rights over their alleged failure to meet the terms of the original contract.
The bilateral summit is to be co-chaired by Algeria’s President Bouteflika and Spanish premier Jose Luis Rodriguez Zapatero.
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