Africa | Algeria

Algeria flag Algiers

Local time

Petrofac opened its Algeria office in 1999 and secured its first major contract in 2000 with the pioneering US$660 million Ohanet gas development project.

Since then, we have continued to grow our presence with a number of major EPC and engineering services contracts held with the Algerian state-owned oil and gas company Sonatrach.

We have developed a local engineering capability to provide engineering, procurement and construction management services. Our base in Algiers is a fully operational engineering office, delivering concept, FEED, procurement and cost estimating services. This is supplemented by our facilities at Hassi Messaoud which is the main logistics, procurement and administration sub-contracting support centre for our projects in the south of the country.

Ongoing projects:

  • US$1.2 billion lump-sum EPC contract to develop the southern fields at the In Salah Development
  • Five-year contract with Sonatrach to provide a range of engineering, design and procurement (EDP) services, as well as a contract for the provisional undertaking of a joint venture for EDP services. The objective is to build local capability and capacity

Completed projects include:

  • US$2.3 billion engineering, procurement, construction and commissioning (EPCC) contract for the enormous El Merk central processing facility, followed by operations and maintenance support
  • Engineering, procurement and construction of the Ohanet gas development. The project pioneered Petrofac’s unique business model – we co-invested alongside BHP Billiton and Sonatrach to create an innovative development and ownership structure
  • US$600 million lump sum EPC contract with In Salah Gas to develop and market gas from the District 3 region in the central Sahara area of Algeria

Providing a sustainable presence

Underpinning our presence in Algeria is our commitment to support the country’s nationalisation programme. In 2019, we inaugurated the Hassi Messaoud Construction Skills Training Centre, following the completion of a programme to upgrade the centre’s facilities. The centre, with capacity to train up to 400 delegates annually, will provide training for the next generation of Algeria’s oil and gas industry workforce across five technical disciplines - instrumentation, electrical, mechanical, pipe fabrication and welding. 

We have also upgraded a training centre in the In Salah town, built a craft centre at El Merk to qualify local high school graduates and facilitated English language courses for engineers through the British council.

We have been focused on developing strong local relationships in Algeria – more than 86% of our total labour force in the country comes from towns close to our operations, so our relationships with local people are very important. They are the cornerstone for all our business development and growth. 

Supporting the community

In response to the impact of COVID-19, we donated US$100,000 to support the Algerian Ministry of Health’s crisis fund for medical materials and equipment.

Commenting on the donation, Graham Mac Millan, Senior Vice President – Africa, said:

The donation will have an immediate and significant positive impact on those that have been hit hardest by the crisis. We are proud to be able to play our part in the fight against this virus, lending our support to the communities in which we live and work, and ensuring help is provided to those who need it.