“In Salah” and “Petrofac” sign gas agreement

Algeria's In Salah Gas (ISG), a consortium of the National hydrocarbon company “Sonatrach”, British Petroleum (BP) and Statoil, signed Monday here with the British oil services group “Petrofac” an agreement for the development of gas fields south In Salah, worth US$1.185 billion.

 The agreement, which was inked in the presence of Sonatrach’s CEO Noureddine Cherouati and ISG’s senior executives, is related to the development of gas fields in Hassi Moumene Garet el Befinat, In Salah and Gour Mahmoud (South of Algeria).

The signing of this agreement is part of the development plan of fields south In Salah, said Cherouati, adding that its implementation “will enable to maintain the level of production at 9 billion cubic meters pear year in the coming years, and also increase Algeria’s production’s potential.” 

Previously On January 21, Petrofac signed a $1.2bn contract for developing the southern fields of Algeria’s In Salah development for In Salah Gas (ISG).

The engineering, procurement and construction contract includes the development of a new central production and gas gathering facility at In Salah, with two dehydration trains that will produce approximately 16.8 million cubic meters of gas per day.

The work also covers associated permanent camps and about 300km of pipelines for gas collection from the in-field wells to export to the Krechba facility.

The Reg facilities will undergo brownfield modifications, with an additional dehydration train and modifications for future operation of the compression facilities.

Under the contract, the Teg and Krechba compression facilities will also be upgraded for future operations.

The 50-month project will support the maintenance of plateau gas production rates of nine billion cubic metres per year beyond 2013.

“The southern fields is our sixth EPC project in Algeria and further demonstrates our commitment to supporting the country’s developments in the energy sector,” said Maroun Semaan, group chief operating officer for Petrofac.

The group secured its first award in Algeria in 1997 for the Tifernine oil development and in 2007 it secured a U S$600 million deal for an In Salah gas compression project for three northern fields, Reg, Teg and Krechba, plus a $2.2 Bn deal for a central processing facility at El Merk in the Algeria’s Berkine Basin.