Petrofac has been awarded a US $1.2 billion lump-sum engineering, procurement and construction (EPC) contract by In Salah Gas (ISG), an association between Sonatrach, BP (NYSE:BP) and Statoil (NYSE:STO), to develop southern fields in the In Salah development in Algeria.
The fields to be developed are Garet el Befinat, Hassi Moumene, In Salah and Gour Mohmoud.
Petrofac's scope of work includes a new central production and gas gathering facility at In Salah comprising two dehydration trains, with the capacity to produce approximately 16.8 million cubic metres of gas per day, associated permanent camps, and approximately 300km of pipelines for gas collection from the in-field wells and export to the existing Krechba facility.
Brownfield modifications will also be undertaken at the existing Reg facilities with an additional dehydration train plus modifications for future operation of the compression facilities. The existing Teg and Krechba compression facilities will also be upgraded for future operations.
The 50-month project, to be completed in phases, will support the maintenance of plateau gas production rates of 9 billion cubic metres per annum beyond 2013.
Commenting on the award, Maroun Semaan, Petrofac's group chief operating officer said: "The southern fields is our sixth EPC project in Algeria and further demonstrates our commitment to supporting the country's developments in the energy sector. We have recently completed a similar project in the region for the same customer with success, and believe this new award reflects our dedication to this strategically important market where we maintain excellent relationships with both our customers and local construction partners."
Subramanian Sarma, managing director of Petrofac's Engineering & Construction business said: "I am delighted that we have secured the southern fields project. We hope to build upon our experience and knowledge gained from our long track-record of working in Algeria, including our current involvement with the In Salah gas compression project and look forward to strengthening further our relationships with both ISG and our subcontracting partners during the execution stages."