Algeria’s state-owned oil and gas company, Sonatrach, has been ordered to pay $290 million to UK-based Sunny Hill Energy after terminating its production sharing agreement for the Isarene gas condensate field.

Sunny Hill Energy had been operating in the Isarene field under a production sharing deal, which Sonatrach ended before the project was completed. In response, the UK firm pursued legal action, ultimately securing the compensation award.

The ruling highlights the risks foreign energy companies face when partnering with Algeria, as well as the potential financial and legal consequences of contract disputes in the country’s hydrocarbon sector. Industry analysts say the case could influence future negotiations and agreements between Sonatrach and international investors.