Petrofac / Bonatti Awarded US$650 million EPC Project in Algeria

Petrofac, the international oil and gas services provider, will lead a partnership with Italian lump-sum contractor Bonatti to execute a 32-month Engineering, Procurement and Construction (EPC) contract for Sonatrach to extend the life of the Alrar gas field in south east Algeria.  The contract value is more than US$650 million.   

The scope of work encompasses engineering, procurement, construction, and commissioning services for the development of new separation and booster compression facilities at the well-established Alrar field which has been operation since 1987.  

Subramanian Sarma, Managing Director of Petrofac's Onshore Engineering & Construction business, commented:  "We are delighted to be partnering with Bonatti in order to deliver this project for Sonatrach at the Alrar field. This development builds on Petrofac's long history of successful execution in Algeria where we have been operating successfully for more than 15 years.  Petrofac has a rigorous approach to project execution and we are focused on delivering an effective, safe solution for Sonatrach that meets our high standards."  

Paolo Ghirelli, President and CEO of Bonatti commented:  "Petrofac and Bonatti combined to provide a competitive proposal for this project, which is Bonatti's second EPC contract at Alrar.  With Petrofac we share a long experience of operating in Algeria, where we started working in 1998, and also a focus on local capability which demonstrates our combined commitment to develop the local energy sector.  We look forward to working closely with Petrofac on this important project."  

Petrofac’s ongoing EPC activities in Algeria include the southern fields development project for In Salah Gas (ISG), an association between Sonatrach, BP and Statoil and the El Merk central processing facility which will be operated by Sonatrach and Anadarko on behalf of the El Merk partners.