French oil and gas giant Total and Algeria are heading towards the arbitration court, according to international media Monday.
Total initiated the legal process on July 2 by filing for an arbitration request against Algeria, due to a dispute on the profit-sharing terms on oil and gas contracts.
The French side is seeking arbitration on the grounds that Algeria unilaterally changed the terms of the joint contracts.
Arbitration is reported to be a last resort after a mutual agreement is unable to be reached.
In response to Total, the Algerian side announced that it is ready to fight back if necessary, according to media stories.
Total is involved in operations in Algeria since 1952 and in 2014 produced 20,000 barrels of oil equivalent, the company says.
Globally, Total's revenue in 2015 reached $165 billion with a net profit of $5 billion.
Reporting by Rahmi Gunduz
Writing by Zeynep Beyza Kilic
Anadolu Agency
zeynep.karabay@aa.com.tr