Petrofac wins $1bn EPC contract for Ain Tsila development project

Petrofac has secured a $1bn contract to provide engineering, procurement and construction (EPC) services for the Ain Tsila Development Project in Algeria.

The contract was awarded by Groupment Isarene, which is the joint operating group set up by Algeria state-owned firm Sonatrach, Petroceltic and Italy’s Enel for the project.

Located around 1,100km south-east of Algiers, the Ain Tsila field is expected to produce gas, LPG and condensate.

A portion of the production from the field will be used to meet local demand while the remaining volume will be exported overseas.

According to the contract, Petrofac will handle commissioning, start-up and performance testing.

Petrofac Engineering and Construction group managing director ES Sathyanarayanan said: “I am delighted we have the opportunity to be working with the Groupement Isarene partners to deliver this strategically important project.

“This award builds on Petrofac’s significant track record in Algeria where we have been operating successfully for more than 20 years, with a strong record for project execution and the development of local capability.

“We are focused on delivering an effective, safe solution that meets our high standards and continues our commitment to the local energy sector.”

In Algeria, the company also delivers EPC activities for Sonatrach’s Tinrhert field development project. The 36-month contract was awarded last August.

Other projects include the Alrar gas field and the Reggane North Development project. Petrofac completed work on these two projects last year.

According to Wood Mackenzie, Petroceltic made the large Ain Tsila wet gas discovery in 2009 and secured a development licence in December 2012.

Petroceltic expects the first production from the field in 2020.