Petrofac wins $1bn EPC project in Algeria
The leading energy contractor signed a 42-month contract for commissioning, startup and performance testing
Petrofac has been awarded an EPC contract worth around $1bn with Groupment Isarene, the joint operating group set up by Sonatrach, Petroceltic and Enel, for the Ain Tsila Development Project in Algeria.
Located around 1,100 kilometres south-east of Algiers, the Ain Tsila field will produce gas, LPG and condensate for the local Algerian market and for export. Under the terms of the 42-month contract, the lump-sum engineering, procurement and construction (EPC) project scope of work includes commissioning, start-up and performance testing.
E S Sathyanarayanan, group managing director, engineering & construction, commented: “I am delighted we have the opportunity to be working with the Groupement Isarene partners to deliver this strategically important project.
“This award builds on Petrofac’s significant track record in Algeria where we have been operating successfully for more than 20 years, with a strong record for project execution and the development of local capability. We are focused on delivering an effective, safe solution that meets our high standards and continues our commitment to the local energy sector.”
Petrofac’s EPC activities in Algeria include Sonatrach’s Tinrhert Field Development Project, along with the Alrar and Reggane projects that commenced production last year.
The company made headlines in February when the UK Serious Fraud Office charged a former employee with 11 counts of bribery as part of a wider corruption investigation. Petrofac addressed the investigation in its 2018 financial results, which saw a 2% drop in its business performance net profit.