International oil and gas service provider Petrofac has entered into two strategic contract agreements with Algerian state-owned explorer Sonatrach to develop hydrocarbon programmes in the North African country
The first is a five-year contract where Petrofac would be providing a range of multi-discipline engineering design and procurement services in support of Sonatrach’s upstream hydrocarbon development programme. It is expected that the contract will cover detailed engineering and services in support of project execution.
Under the terms of the second agreement, Petrofac has signed an MoU with Sonatrach, to establish an Algerian joint venture (JV) to undertake engineering and project execution of selected upstream and downstream developments. The JV is expected to be finalised by mid 2015 with first project activity in Q4 2015.
Petrofac managing director for engineering and consulting services business Craig Muir said, “Our track record in Algeria extends more than 15 years and over that time we have had the opportunity to undertake many different types of work. From EPC projects at one end of the spectrum, through operations and maintenance and engineering services, underpinned by our strong local technical training capability.
“These two most recent agreements are excellent illustrations of our strategy in action — utilising our international capability to maximise in-country value in key areas of operations. This is an ideal opportunity to support our longer-term sustainability in Algeria and we look forward to working with Sonatrach to deliver the wide variety of services that these agreements have the potential to offer.”
According to Petrofac, building local capability and capacity through the transfer of knowledge, systems and processes and customised training was at the heart of both agreements to ensure the development and mentoring of future generations so they have the skills to take Algeria’s oil and gas industry to the next level. The majority of engineering services would be delivered locally, the firm added.
