Oil services firm Petrofac has announced today that it has agreed a £543 million deal with Sonatrach for the Tinhert field development project in Algeria.
The company, which has offices in Aberdeen, confirmed that it has received a provisional letter of award for an engineering, procurement and construction (EPC) contract.
The deal is agreed, in principal, for the EPC1 section of the project.
Located in Ohanet, around 923 miles southeast of Algiers, EPC1 will provide a new inlet separation and compression centre.
Under the terms of the 36-month contract, the scope of work includes a pipeline network of approximately 248 miles to connect 36 wells, along with commissioning, start-up and performance testing of facilities.
E S Sathyanarayanan, group managing director for engineering and construction, 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.
“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.”