Petrofac, leading a consortium with Genie Civil et Batiment (GCB), has received notification of a provisional award for an engineering, procurement and construction contract with Sonatrach for the Tinrhert EPC2 Development Project in Algeria. The contract 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, EPC2 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, which Petrofac originally helped deliver in 2018, 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-country. Elie Lahoud, Chief Operating Officer for Petrofac’s Engineering & Construction division said: “The Petrofac and GCB consortium is testament to our focus on local delivery, through investment in local supply chains and work forces. 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 has decades of experience in Algeria with a strong track record of safe 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.