Petrofac wins an order for hydrocarbons in Algeria
Petrofac has received a major order for hydrocarbons in Algeria. The British engineering, technology and project execution company in the fields of oil, gas and petrochemicals won this order from the Algerian company GCB, a subsidiary of the Sonatrach Group.
It was Petrofac who announced the news in a press release issued on Thursday, August 4th. According to the statement, the value of the contract is US$ 300 million and Petrofac’s share is US$ 200 million.
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This is an engineering, supply and construction contract for the Tinhert gas field development project at In Amenas in the Wilaya of Illizi, South East Algeria. It concerns the construction of a new Central Processing Plant (CPF) with separation and decarbonization units for the Alrar gas field near the Algerian-Libyan border.
According to Petrofac, the project aims to increase natural gas production while reducing CO₂ from gas reserves in line with global market specifications.
“We are very pleased to have been informed by Sonatrach of this provisional award, which reflects their confidence in our ability to create value in the country while safely delivering strategically important energy infrastructure,” said Elie Lahoud, director at Petrofac, as quoted in the press release.
Over $1.5 billion worth of contracts were awarded in six months
Petrofac was previously awarded the $600 million development contract for the first phase of this project in 2018. The agreement called for the construction of an Entry and Compression Separation Center at Ohanet (In Amenas) within 36 months.
With the increase in oil prices, Sonatrach Group has restarted its investments in oil and gas exploration. On May 28, he signed a contract with the Chinese company Sinopec Overseas Oil & Gas Limited (SOOGL) to share oil production in the Zarzaitine (Illizi) area. Amount: $490 million.
On May 19, the Algerian gas giant commissioned the Chinese group CNTIC/LPEC to build a new oil facility in Arzew near Oran for $520 million.
Last February, Sonatrach awarded China’s Sinopec a contract worth nearly $180 million to build a 150,000 m3 capacity LNG storage tank at the Skikda liquefaction complex.
Since the beginning of the year, Sonatrach has awarded more than $1.5 billion in contracts to foreign companies.