Sonatrach has announced that it has signed two contracts worth more than US$1.6 billion with the Japanese JGC Corporation and the Italian consortium ABB/Sarpi, the company said in statement
The Algerian state-owned hydrocarbons giant said that the first contract, worth $1.36 billion, was signed with the JGC Corporation and is for engineering procurement and construction (EPC) work for the Gassi Touil gas field. The contract will run for 42 months and consists of the necessary installations for process, a collection network of 54 wells from seven gas fields and the construction of lines of products evacuations and the infrastructures utilities.
Works on the contract are due to completion by 2012 and will help Sonatrach to increase its output of natural gas, GPL and condensate.
The second contract, worth $218.53 million, was signed with ABB/ Sarpi and includes the construction of a gas separation facility at Haoud Berkaoui and the re-instrumentation of production centers at Haoud Berkaoui, Benkahla and Guellala.
The contract is due to run for 32 months and also includes the procurement and installation of DCS, ESD and F&GÂ control systems in every production center.
The award of contracts in Algeria has increased immensely in the last few weeks, as the country tries to take advantage of the huge windfalls the country has generated from its hydrocarbons exports. A similar $1.6 billion contract award was announced last week.
The CEO of the company Mohamed Mezian told Arabianoilandgas.com in an exclusive interview that his company aims to spend $65 billion on energy project in the next five years, where $1.5 billion will be dedicated to exploration every year.
Meanwhile, Algerian energy minister Chakib Khalil revealed that Algeria will spend $28 billion on petrochemical industry in the next five years.
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