Petrofac wins $1.15B EPC contract for In Salah Southern field development in Algieria

Source: Statoil

Statoil (NYSE:STO), BP (NYSE:BP) and Sonatrach have signed a US $1.15 billion engineering, procurement and construction (EPC) contract with Petrofac for the execution of the In Salah Southern Fields development project in Algeria.
 
The EPC contract is part of the phase two development of the In Salah license in the southern Sahara. For Development and Production International the project marks an important step toward maturing barrels for profitable production. 

The three gas fields – Krechba, Teg and Reg – located in the northern part of the license, were initially developed in phase one, with the objective of delivering a production profile of nine billion cubic metres of gas annually. This phase started in late 2001, and first commercial gas was delivered in July 2004.
Based on the expected decline of gas production from these three fields, phase two of the development has now implemented to maintain the production plateau and sustain long-term gas sales commitments. It consists of four gas fields – Garet El Bifna, Gour Mahmoud, In Salah and Hassi Moumene – in the southern part of the license. 

Under the EPC contract, Petrofac will build a number of facilities – including well pads, manifolds, flowlines, and a new central processing facility (CPF) with a gas processing capacity of 17 million cubic meters per day. The CPF will be constructed north of In Salah town and tied back to the existing producing facilities located in Reg for further transport of the gas to Krechba CPF for carbon dioxide removal and gas export. 

The In Salah CPF at Krechba will also process the gas from the Southern Fields development project. The carbon dioxide will be captured and stored underground before the gas is piped to the national gas grid.
First gas from the Southern Fields development project is expected for the first half of 2014. Gas produced from In Salah is marketed by joint marketing company “In Salah Gas Limited” – an association between Sonatrach, BP and Statoil. 

The three partners in the In Salah license have investment shares of 35% (Sonatrach), 33.15% (BP) and 31.85% (Statoil), respectively.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs