Petrofac said it is close to signing a US$600 million contract with Algeria’s Sonatrach for the Tinhert field development project.
It has received a provisional letter of award for an engineering, procurement and construction (EPC) contract for EPC1 and the formal contract signing is expected to take place next month, the UK-based company said in a statement.
Located in Ohanet, around 1,500 kilometres southeast of Algiers, EPC1 will provide a new inlet separation and compression centre. Under the terms of the 36-month contract, Petrofac said the scope of work includes a pipeline network of approximately 400 km to connect 36 wells, along with commissioning, start-up and performance testing of facilities.
“This award builds on Petrofac’s significant track record in Algeria where we have been working in support of the country’s oil and gas production for more than two decades,” said E S Sathyanarayanan, group managing director for engineering and construction at Petrofac.
“We have continued to grow our presence in-country through a number of major EPC and engineering services contracts with Sonatrach, including the Alrar and Reggane projects that commenced production this year, and look forward to deploying our expertise to deliver this project with operational excellence and safe project execution at the core of our approach.”
Earlier this year, Algerian state energy firm Sonatrach said it will invest $250 million to boost output at the Tinhert gas field to 20 million cubic metres per day by 2020 up from currently 5 million cubic metres.