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Contracts awarded for development of Rhourde El Baguel oil field and related projects in Algeria

Several contracts, including one for the construction of an LPG facility from the Rhourde El Baguel oil field, were recently awarded in Algeria. Two Italian companies, Tecnimont, and Arkad are some of the companies awarded the nearly USD 570M contracts by Sonatrach.

These contracts are part of Sonatrach’s energy policy that aims to stabilize and increase the nation’s gas production. Moreover, with these contracts, the company aims to secure the resources necessary for its regional and worldwide energy plan. The plan is reportedly in great demand, particularly from its European gas partners.

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Tecnimont will carry out the construction of the LPG facility from the Rhourde El Baguel oil field. Situated in southeast Algeria, the plant will have a processing capacity of 10 million m3 of gas per day. In addition, it will be able to produce 1,000 tonnes of LPG, 300 tonnes of condensate, and 8.7 million m3 of gas per day.

Also Read: Naftal, Sonatrach to Build LPG Pipeline along Algeria’s Mediterranean Coast

It is anticipated that the construction phase will cost about $400 million (54 billion Algerian dinars).

Other projects awarded alongside the Rhourde El Baguel oil field project

Alongside the Rhourde El Baguel oil field project, Sonatrach awarded another contract for the construction of a low-pressure compression unit. This contract, which also covers the construction of a collection network, will be executed by Arka.

The collection network will allow the connection of 24 new producing wells to the Tin Fouiyé Tabenkort gas field. This gas field is run by Sonatrach and TotalEnergies as a joint venture known as Groupement TFT (GTFT).

As part of this project, Arka will also work towards enabling the production plateau to be maintained at 11m cubic meters per day. This goal is consistent with the company’s international contractual obligations relating to gas.

Financed to the tune of roughly USD 170m, the Arka project will take approximately 34 months to complete.

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