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Saipem scoops €1.3 billion Algerian LPG contract

Uchenna Izundu
International Editor

LONDON, Nov. 17 -- Sonatrach has let a €1.3 billion contract to Saipem SPA to develop an LPG processing facility at the Hassi Messaoud oil and gas complex in central Algeria, about 900 km southeast of Algiers.

Sonatrach signed a lump-sum, turnkey contract with Saipem covering engineering, procurement, and construction of three LPG production trains with a total capacity of 8 million cu m/day.

The works will be completed by first-half 2012.

Supergiant Hassi Messaoud is the basin's and the country's largest oil field, with estimated ultimate recovery of 9 billion bbl of 43° gravity oil. It produces from a 900-ft oil column in a Cambrian sandstone reservoir at a depth of 11,000 ft in a 1,300 sq km productive area.

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