Petrofac signs $200m Contract in Algeria

Following provisional award in August 2022, Petrofac, leading a consortium with Genie Civil et Batiment (GCB), has today signed an engineering, procurement and construction contract with Sonatrach for the Tinrhert EPC2 Development Project.

The contract, signed at an official ceremony in Algiers, is valued at approximately US$300 million, with Petrofac’s share around US$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) between Petrofac and Sonatrach’s Algerian Petroleum Institute (IAP) was also signed at the ceremony. The collaboration is designed to build local capability in support of Algeria’s nationalisation objectives.

The IAP was created in 1965, with the objective of providing qualified personnel for the development of Algeria’s energy industry. The Petrofac/IAP partnership will modernise training schools, construct new facilities, and provide training and competence management solutions for local engineers. In addition, Operations and Maintenance training programmes will be implemented for both local and regional markets. The MOU also encompasses the development and roll out of e-learning resources.