Algeria signs contracts for implementation of Oil & Gas projects

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Algeria through Sonatrach, the national state-owned oil company has signed contracts – valued just shy of US$ 520M – with six domestic companies for the implementation of Oil & Gas projects in the North African country.

The contracts were signed with ENGCB, SARPI, Entreprise Nationale De Grands Travaux Pétroliers (ENGTP), Entreprise Nationale de Canalisations Spa (ENAC), the Pipeline Construction Company Kanaghaz and Cosider Canalisations, a subsidiary of the Cosider Spa Group.

Expected projects, in particular, as per the contracts

The contracts will particularly see the construction of pipelines over a total length of 700 kilometers from the southwest of the country. These pipelines are expected to transport 11 million cubic meters of oil per day when operational by next year but one.

Also Read: Algeria completes the construction of GR7 gas pipeline project

As part of the contracts, SARPI and Safir Group will work on development plans for oilfields to the west of Tuat, also known as Touat and which is a natural region of desert in central Algeria. This project will enable the supply of 6,000 barrels per day of oil to the Adrar refinery, located in Adrar province in the southwestern region of the country, by 2022.

Cosider on the other hand will work on fire detection and anti-fire networks at the Arzew facilities in the Oran Province while ENAC will supply, install and commission cathodic protection systems on pipelines from Hassi R’Mel to Arzew.

The projects are expected to utilize local content and create nearly 3,000 local jobs, according to the state-owned oil company.

The R-OB1 pipeline

Meanwhile, Sonatrach recently began operating the R-OB1 pipeline between Msila and Béjaia, following the completion of the rehabilitation project by ENAC. The scope of the project involved the construction of a 164 km pipeline between the SP3 pumping station in Msila and the SP13 isolation station in Oued Ghir in Bejaïa.