Sonatrach has confirmed a major construction contract with Petrofac, while moving ahead on gas negotiations with European offtakers.
The state-owned Algerian company said it had awarded work at Tinrhert to GPGT Group. This is made up of Petrofac and local company Genie Civil et Batiment (GCB).
Petrofac reported the provisional award of the work in August. The companies will provide engineering, procurement and construction (EPC) at the Tinrhert EPC2 development.
The EPC contract is worth $300 million, of which Petrofac’s share is $200mn.
Work includes the construction of a new central processing facility (CPF), with tie ins to the existing Alrar separation and boosting facilities. The facility will increase gas production and remove CO2.
Sonatrach said the work on Tinrhert’s southern area would provide another 10 million cubic metres per day of gas, in order to maintain production at 25 mcm per day.
The work should take 36 months, the Algerian company said.
Petrofac signed a memorandum of understanding (MoU) with Institut Algérien du Pétrole (IAP), another Sonatrach unit. The service company will provide technical and training assistance and an online learning library.
Sonatrach also awarded work on a multi-phase pump station on the Rhourde Chegga-Hassi Messaoud link. The work will provide an export link for four fiels at Rhourde Chegga, RDC, WRDC, NHBHJ and RDOM.
Sonatrach gave the $198 million contract to its own subsidiary, SARPI. This will provide 20,000 barrels per day of oil production and 800,000 cubic metres per day of associated gas.
Sonatrach signed a deal with Enel on gas supplies to the Italian and Spanish markets. The sales price was adjusted, Sonatrach said, and it agreed to provide additional volumes in 2022. They also discussed the provision of additional supplies in the coming years.
As is customary, neither side revealed the new price.
Sonatrach is close to a deal with Naturgy on new prices. The Algerian company’s boss Toufik Hakkar said on September 28 that the negotiations had ended and they would sign the agreement.
Hakkar went on to say Sonatrach had no plans to expand Medgaz or build new gas pipelines.