Continental Focus, International Reach

Sonatrach Signs Numerous Contracts with Local and International Firms

Friday, October 28, 2022

Algerian state firm Sonatrach announced that it has signed five contracts with several national companies as well as two EPC development contracts with Tecnimont and Arkad related to production as well as contracts for an LPG extraction plant and pipeline.

As part of the development work for the Rhourde El Bagel hydrocarbon field, an EPC contract was signed with Tecnimont for the construction of ​​an LPG extraction plant for an amount of 56 billion dinars equivalent.

The projected processing capacity of this plant is 10 million m 3 /d of associated gas allowing the production of 1000 tons/d of LPG, 300 tons/d of condensate and 8.7 million m 3 /d of gas, for a completion period of 36 months.

A contract was also signed with the subsidiary ENAC, Entreprise Nationale de Canalisations, relating to the construction in EPC of a line of 14’’ pipelines with a length of 65 km, allowing the shipment of LPG produced by this future plant to the LPG transport network (LR1) in Hassi Messaoud.

The estimated duration of completion of this pipeline is 20 months for a contractual amount of 9.9 billion dinars.

To maintain its hydrocarbon development efforts at the Tin Fouiyé Tabenkort (TFT) gas field, the TFT Group (Sonatrach-TotalEnergies) has signed an EPCCm (Engineering, Procurement, Construction and Construction Management) contract with the Italian company ARKAD for the construction of a new low-pressure compression unit, a collection network allowing the connection of 24 new producing wells to the existing plant as well as the revamping of current facilities.

This project will allow the production plateau to be maintained at 11 million m 3 /d. The amount of this project is 24 billion Dinars equivalent for a completion period of 34 months.

Three other contracts for the supply of equipment were signed with innovative companies and start-ups. These contracts allow Sonatrach to obtain specific equipment for hydrocarbon processing units from Algerian companies that have managed to locally manufacture this equipment, previously imported in foreign currencies.

Thus, a contract was awarded to the start-Up GENSOL for the design, manufacture and installation of two-stage separation equipment at the Hassi Messaoud LPG processing unit (GPL2-HMD) for an amount of 140 million dinars.

Two contracts for the design, manufacture and supply of high and low pressure three-phase separators for the Tin Fouiyé Tabenkort gas treatment unit were awarded respectively to the national company EPE MAGI and the national company ENCC for an amount of 69 million dinars each.

Finally, the ceremony witnessed the signing of a contract between Sonatrach and its subsidiary ENGCB, relating to the construction of a living base intended for the accommodation of the operating personnel of the pumping station under construction, from Rhourde Chegga in Hassi Messaoud.

The accommodation capacity of this life base is 82 to 120 people. The construction period for this infrastructure is 24 months for a contractual amount of 3.4 billion dinars.


« GO BACK