Posted inEPC Contracts

Petrofac, GCB win $300 million EPC contract in Algeria

Once completed, the project will ramp up gas production and remove CO2 from the field’s gas reserves

A joint venture between UK-based international energy services provider Petrofac and Genie Civil et Batiment has been awarded an engineering, procurement and construction (EPC) contract for the Sonatrach-operated Tinrhert EPC2 Development Project in Algeria.

The contract is valued at approximately US$300 million, with Petrofac’s share around US$200 million, the company announced Thursday.

Located in Alrar, around 1,500 kilometres southeast of Algiers, EPC2 will provide a new Central Processing Facility (CPF) with inlet separation and decarbonisation units.

First gas was introduced at Tinrhert Field Development project in Algeria in July. (Source: Petrofac)

The scope of work also includes tie-ins to the existing Alrar Separation and Boosting Facilities, which Petrofac originally helped deliver in 2018, along with commissioning, start-up and performance testing.

Upon completion of the project, 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-country.

Elie Lahoud, CEO, Engineering & Construction division, Petrofac

“The Petrofac and GCB consortium is testament to our focus on local delivery, through investment in local supply chains and work forces,” Elie Lahoud, CEO for Petrofac’s Engineering & Construction division, said in a statement.

He added, “We are very pleased to have been notified of this provisional award by Sonatrach, which reflects their confidence in our ability to drive in-country value, whilst safely delivering strategically significant energy infrastructure.”

Petrofac holds several years of experience in Algeria with a strong track record of safe project execution.

In 2018, the company was awarded a contract with Sonatrach for Tinrhert EPC1, which, includes delivery of a new inlet separation and compression centre, successfully extending the existing Ohanet CPF.

This project recently achieved a major milestone with the safe introduction of the first hydrocarbons for the start-up of production.