As part of the contract

Petrofac has won a $600m contract to provide engineering, procurement and construction (EPC) services for EPC1 of Sonatrach’s Tinhert field development project in Algeria.

The company has received a provisional letter of award and expects to sign a formal contract agreement next month.

EPC1 is located in Ohanet, around 1,500km south-east of Algiers, and will provide a new inlet separation and compression centre.

The EPC contract is valid for a period of 36 months.

“This award builds on Petrofac’s significant track record in Algeria, where we have been working in support of the country’s oil and gas production for more than two decades.”

Pursuant to the terms of the contract, Petrofac will work on a pipeline network of around 400km to connect 36 wells and undertake commissioning, start-up and performance testing of facilities.

Petrofac Engineering and Construction group managing director Sathyanarayanan said: “This award builds on Petrofac’s significant track record in Algeria, where we have been working in support of the country’s oil and gas production for more than two decades.

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“We have continued to grow our presence in-country through a number of major EPC and engineering services contracts with Sonatrach, including the Alrar and Reggane projects that commenced production this year, and look forward to deploying our expertise to deliver this project with operational excellence and safe project execution at the core of our approach.”

Sonatrach is planning to invest $250m to increase production at the Tinhert gas field to 20 million cubic metres (mcm) per day by 2020 up from the existing 5mcm, Reuters reported in March this year, citing a statement from the company’s CEO Abdelmoumen Ould Kaddour.

Meanwhile, Petrofac’s profits for the six months ended 30 June this year increased by 20%.