Petrofac Lands Algerian Contract

Petrofac has received a provisional letter of award for an engineering, procurement and construction (EPC) contract worth $600mn with Sonatrach for EPC1 of the Tinrhert field development in Algeria. The formal contract signing is expected to take place in September, the engineering firm said August 29.

Located in Ohanet, around 1,500 km southeast of Algiers, EPC1 will provide a new inlet separation and compression centre. Under the terms of the 36-month contract, the scope of work includes a pipeline network of about 400 km to connect 36 wells, along with commissioning, start-up and performance testing of facilities.

Petrofac said its presence in Algeria had grown thanks to a number of major EPC and engineering services contracts with Sonatrach, including the Alrar and Reggane projects that began production this year.

Sonatrach owns 51% of Tinrhert; the other 49% now belongs to Dragon Oil, which is controlled by Dubai's Emirates National Oil Co.