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Sonatrach: Seven contracts with Algerian, Italian companies inked- Document

October 28, 2022

ALGIERS- The national state-owned oil company Sonatrach signed, Thursday in Algiers, seven contracts; five with national companies including innovative companies and startups, as well as two contracts with the Italian companies Tecnimont and Arkad.

To this end, and as part of the development of the Rhourde El Baguel hydrocarbon field in Hassi Messaoued (Ouargla), a contract was signed with the Italian company Tecnimont for the construction, in EPC, of ​​a extraction plant of LPG for an equivalent amount of 56 billion dinars.

The plant is expected to process 10 million m3/d of associated gas, allowing the production of 1,000 tonnes/d of LPG, 300 tonnes/d of condensate and 8.7 million m3/d of gas, with a 36 months’ completion period.

parallel to this plant project, another EPC contract was signed with the National Pipeline Company (ENAC), a subsidiary of Sonatrach, for the construction of a 14 pipeline with a 65 km length, allowing the shippment of the LPG produced by this future plant “Rhourde El Baguel” to the LPG transport network (LR1) in Hassi Messaoud.

The estimated duration of completion of this pipeline is 20 months for a contractual amount of 9.9 billion dinars.

In addition and as part of its efforts to develop hydrocarbons at the level of the gas fields of Tin Fouiyé Tabenkort (TFT), the TFT Group (SONATRACH-Total Energies) signed a contract with the Italian company ARKAD, relating to the realization, in EPCCm ( Engineering, Procurement, Construction and Construction Management), of a new low-pressure compression unit, a gathering system linking 24 new producing wells to the existing plant, as well as the revamping of current facilities.

This project which is expected to cost 24 billion dinars and last 34 months, is aiming to keep plateau production at 11 million m3/d.

On the other hand and as part of the support for the policy of promotion of the national production tool, adopted by Sonatrach, three other contracts for the supply of equipment were signed during this ceremony, held at the headquarters of the general management of Sonatrach, with innovative national companies and start-ups.

These contracts will allow Sonatrach to acquire specific equipment for hydrocarbon processing units from innovative Algerian companies that successfully manufactured locally such equipment, previously imported in foreign currencies.

Therefore, a contract was granted to the Start-Up Gensol for the conception (design), manufacture and installation of two-stage separation equipment at the Hassi Messaoud LPG processing unit (GPL2-HMD) for an amount of 140 million dinars.

Two other contracts for the design, manufacture and supply of high and low pressure three-phase separators for the Tin Fouiyé Tabenkort (TFT) gas processing unit were awarded respectively to the national company EPE MAGI and the national company ENCC for an amount of 69 million dinars each.

Eventually, the ceremony witnessed the signing of a contract between Sonatrach and its subsidiary ENGCB, relating to the construction of a housing complex to shelter the operating personnel ( the staff) of the pumping station, under construction, atRhourde Chegga in Hassi Messaoud.

The accommodation capacity of this infrastructure is from 82 to 120 workers with a completion deadline of 24 months for a contractual amount of 3.4 billion dinars.

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