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Petrofac, Sonatrach sign $300 million contract for Tinrhert EPC 2 project

The companies also signed an agreement aimed at building local capability in support of Algeria’s nationalisation objectives

Petrofac and Sonatarch executives signing the MoU in Algeria. (Source: Petrofac)

Following a provisional award in August 2022, a Petrofac-led consortium signed on September 29 an EPC contract with Sonatrach for the Tinrhert EPC2 Development Project. The contract, signed at an official ceremony in Algiers, is valued at approximately $300 million, with Petrofac’s share around $200 million.

Located in Alrar, around 1,500 kilometres southeast of Algiers, the project will provide a new Central Processing Facility (CPF) with inlet separation and decarbonisation units. The scope of work also includes tie ins to the existing Alrar Separation and Boosting Facilities, along with commissioning, start-up and performance testing. When completed, the development will boost natural gas production and remove CO2 from the field’s gas reserves, within specifications for the global market, enabling further economic growth in Algeria.

A Memorandum of Understanding (MoU) was also signed between Petrofac and Sonatrach’s Algerian Petroleum Institute (IAP) aimed at building local capability in support of Algeria’s nationalisation objectives.

Petrofac has been operating in Algeria for several years. In 2018, the company was awarded a contract with Sonatrach for Tinrhert EPC1, which, includes delivery of a new inlet separation and compression centre. Petrofac is committed to the development of local skills and supporting local supply chains. In 2010 the Company designed and built a construction skills training centre in Hassi Massaoud with the capacity to train up to 400 Algerian delegates each year.