Sonatrach lets contract for Menzel Ledjmet East field

Uchenna Izundu
OGJ International Editor

LONDON, Mar. 26 -- Sonatrach has let a $1.8 billion turnkey contract to Saipem SPA to construct the onshore natural gas treatment facilities for Menzel Ledjmet East (MLE) field and future development from the central area field complex (CAFC) on Block 405b.

Sonatrach said the agreement also covers construction of pipelines to transport gas, LPG, and condensate from Ledjmet to Gassi-Touil. The facilities, near Hassi Messaoud, will have a capacity of 9 million cu m/day of gas, 10,000 b/d of condensate, and 14,000 b/d of LPG, Sonatrach said.

Saipem's engineering, procurement, and construction contract covers a processing facility in the Berkine basin, 1,000 km southeast of Algiers. It will have a capacity of 350 MMcfd of gas and 35,000 b/d of liquids.

The work is to be finished in March 2012.

MLE is an oil and wet gas field being developed in partnership with Eni SPA following its acquisition of original partner First Calgary Petroleum LP last year.

The Shaw Group Inc. will be subcontractor to Saipem for the engineering services on the LPG facility.

Contact Uchenna Izundu at uchennai@pennwell.com.

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