19th Aug 2015 07:22
LONDON (Alliance News) - Petroceltic International PLC shares rose on Wednesday after it said it has shortlisted four companies to award the engineering, procurement and construction contract for the company's flagship Ain Tsila gas field in Algeria.
Petroceltic shares were up 5.7% to 56.30 pence per share on Wednesday morning.
The company said, with its joint venture partners, it completed a pre-qualification process to select a short list of EPC contractors with Algerian experience which would be capable of delivering the central gas processing facility for the development of the field.
The four companies shortlisted are Daewoo Engineering & Construction Co Ltd, GS Engineering Corporation and Dodsal Engineering & Construction PTE Ltd, JGC Corporation and JGC Algeria Spa and Tecnidas Reunidas SA and Bonatti. The latter of the three are all acting on behalf of a consortium, it said.
The winner will provide an industrial base, an administration and accommodation base, well gathering system, and product export system on top of the central processing facility.
The surface facilities have been designed to process up to 420 million standard cubic feet per day of wet gas, and transport the resultant product streams of dry gas, liquefied petroleum gas and condensate to existing tie-in points in the export infrastructure in Algeria.
"Following a technical and commercial evaluation of the offers, it is anticipated that the EPC tender process will complete with an award recommendation targeted for year end 2015, with first Ain Tsila gas export scheduled for 2018," said the company in a statement.
The Ain Tsila gas field is a joint venture between Petroceltic, which holds a 38.25% stake, Sonatrach with a 43.4% stake and Enel which holds the remaining balance.
Petroceltic's costs on the field are currently being carried by its joint venture partners.
The gas field has been in focus for Petroceltic shareholders recently after activist investor Worldview Capital Management Ltd, which holds a 19% stake in the company, condemned placing the key Ain Tsila gas field as security for a proposed bond issue after claiming the company "had run out of money".
That bond issue will be voted on at an extraordinary general meeting sometime in September.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
PCI.L