Petrofac (LON: PFC) has confirmed the signing of a $1.5bn deal for a petrochemical complex in Algeria.
First announced as a provisional award in May, the engineering, procurement and construction (EPC) contract has been awarded by a subsidiary of Algeria’s state-owned Sonatrach.
The complex, in the Arzew Industrial Zone in Algeria, will produce 550,000 tonnes of polypropylene per year – a diverse type of thermoplastic used in areas including the automotive sector and packaging for consumer products.
London-listed Petrofac and its JV partner China Huanqiu Contracting & Engineering Corporation (HQC) will create two major integrated processing units for propane dehydrogenation and polypropylene production at the Algeria plant.
Petrofac’s share of the deal is valued at more than $1bn.
CEO Tareq Kawash said: “I am delighted to be in Algiers alongside our partner and client to mark the official award of this pioneering project. Broadening Petrofac’s portfolio within the petrochemical sector, this contract builds on our 25-year track record of safely delivering strategically significant energy infrastructure in Algeria, while developing local workforces.”
Petrofac has been active in Algeria since 1997.
The lucrative E&C division has been challenged in recent times, but in an interview with energy voice, new energy services boss John Pearson noted that the asset solutions business, which has a focus in the UK “had a really, really good year”.