Petroleum Africa
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Thursday, April 13, 2006
Partners in the In Amenas Project (IAP) in Algeria have awarded the Wood Group a major contract to modify onshore oil and gas equipment. According to an announcement from the service company’s spokeswoman, the firm’s engineering and production facilities unit won a multimillion-dollar deal to service equipment for IAP. The initial contract, which is the division’s first big contract in North Africa, is for 18 months, with a possible two-year extension, and is expected to create more than 100 jobs in Algeria.
The onshore IAP project is the largest wet gas project in Algeria and involves the development and production of natural gas and gas liquids from four wet gas fields in the Illizi basin in the south-eastern part of the country. Wet gas is natural gas containing significant amounts of liquefiable hydrocarbons. The project is expected to produce around nine billion cubic meters of gas per year of wet gas and 50,000 barrels of liquids starting in 2006.
Wood said it will transfer techniques developed in its North Sea projects to North Africa. "This contract represents a strategic application of Wood Group’s proven ability to deliver added value in the challenging mature fields of the North Sea to new prospects in Algeria," said John Stewart, director of Wood Group, Middle East and North Africa. "It is the group’s policy, wherever possible, to use local skills and expertise, so we will be transferring North Sea knowledge into Algeria."
IAP is run by three partners, UK-based BP, Norway’s Statoil, and Sonatrach, the Algerian state oil company.
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