Petrofac has won a major hydrocarbons contract in Algeria. The British engineering, technology, and project implementation company in the fields of oil, gas, and petrochemicals won this contract with the Algerian company GCB, a subsidiary of the Sonatrach group.
It was Petrofac who announced the news in a press release published Thursday, August 4. The contract amount is $300 million and Petrofac’s share is $200 million, according to the statement.
This is an engineering, supply, and construction contract for the Tinhert gas field development project in In Amenas in the wilaya of Illizi in southeastern Algeria. It concerns the construction of a new central processing facility (CPF) comprising separation and decarbonization units for the Alrar gas field near the Algerian-Libyan border.
The project is expected to boost natural gas production while reducing CO₂ from gas reserves, in line with global market specifications, according to Petrofac.
“We are very pleased to have been informed of this provisional award by Sonatrach, which reflects their confidence in our ability to generate value in the country, while safely providing strategically important energy infrastructure,” said Elie Lahoud, director at Petrofac, quoted in the press release.
Over $1.5 billion in contracts awarded in six months
Petrofac has already obtained in 2018 the contract for the development of the first phase of this project for an amount of 600 million dollars. The agreement provided for the construction of an Entry and Compression Separation Center in Ohanet (In Amenas) within 36 months.
With the rise in oil prices, the Sonatrach group has relaunched its investments in oil and gas production. On May 28, he signed an oil production sharing contract, on the Zarzaitine perimeter (Illizi) with the Chinese company Sinopec Overseas Oil & Gas Limited (SOOGL). Amount: 490 million dollars.
On May 19, the Algerian gas giant chose the Chinese group CNTIC/LPEC to build a new oil installation in Arzew near Oran for 520 million dollars.
Last February, Sonatrach awarded the Chinese Sinopec a contract worth nearly 180 million dollars for the construction of an LNG storage tank with a capacity of 150,000 m3 at the Skikda liquefaction complex.
Since the beginning of the year, Sonatrach has awarded more than 1.5 billion dollars in contracts to foreign companies.
