Petrofac has received a provisional letter of award for a $600-million engineering, procurement and construction (EPC) contract with Algerian state energy company Sonatrach for EPC1 of the Tinhert Gas Field Development Project in Algeria, the British oilfield services provider announced Wednesday.
Formal contract signing is expected to take place in September, a press release read.
Located in Ohanet, around 1,500 kilometers (932 miles) southeast of capital Algiers, EPC1 will provide a new inlet separation and compression center, according to the statement.
"Under the terms of the 36-month contract, the scope of work includes a pipeline network of approximately 400 km (248.5 miles) to connect 36 wells, along with commissioning, start-up and performance testing of facilities," it added.
Group Managing Director of Engineering and Construction E S Sathyanarayanan said the award built on Petrofac’s "significant" track record in Algeria where the company has been working "in support of" the country's oil and gas production for more than two decades.
"We have continued to grow our presence in-country through a number of major EPC and engineering services contracts with Sonatrach, including the Alrar [gas field] and Reggane [gas treatment] 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," Sathyanarayanan added.
Algeria produces around 100 billion cubic meters of natural gas per year, of which 55 billion are exported with Europe being a major market.
By Hale Turkes