16th May 2014 06:52
LONDON (Alliance News) - Petrofac Ltd said Friday it has been awarded a contract worth more than USD970 million for the gas gathering, treatment and export facilities package of the Reggane North Development Project in Algiers.
The international oil and gas services provider said the contract, which will run for 36 months of execution, was awarded by Groupement Reggane, a partnership comprising Algerian state-owned company Sonatrach (40%), Spain's Repsol (29.25%), Germany's RWE Dea AG (19.5%) and Edison of Italy (11.25%).
Under the terms of the contract, Petrofac will be undertaking the engineering, procurement, construction, commissioning and start-up of the gas treatment plant, gathering system and export pipeline.
The Reggane North Development Project is located in the Reggane basin of the Algerian Sahara desert 1,500 km south-west of Algiers. The Reggane project will bring on stream 26 wells from four fields in the Reggane basin - Reggane, Kahlouche, Kahlouche South and Azrafil South East - all part of permissions granted for blocks 351c and 352c.
The latest contract award is in addition to Petrofac's engineering, procurement, construction activities in Algeria, which also includes the Southern fields development project for In Salah Gas, an association between Sonatrach, BP and Statoil, and the Alrar gas field development project which is being executed for Sonatrach in partnership with Italian contractor Bonatti.
Last week, the oil and gas services company said it has achieved good Engineering, Construction, Operations & Maintenance progress in its first quarter, but it warned that net profit will fall to between USD580 million and USD600 million in 2014 from USD650 million in 2013 due to lower-than-expected earnings from its Integrated Energy Services operations, due partly to delays in development of is major Greater Stella Area project.
Shares in Petrofac last traded at 1,180 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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