Algerian state oil and gas company Sonatrach yesterday awarded two major construction contracts valued at $185 million to build a 822-km pipeline between the southeast Haoud El Hamra oil field and the northwest port of Arzew, the Organization of Petroleum Exporting Countries' news agency, OPECNA, reported.
The project has been divided into spreads of 419 km and 403 km. The $95 million contract to construct the first section was awarded Algeria's Cosider Iron and Steel Group and Halliburton Co. subsidiary Brown & Root Condor. The second phase contract, worth some $90 million, was won by a Russian companies Stroy and TransGaz.
The pipeline project, which will include six pumping stations, is due to be completed within 2 years. It would transport crude from "new discoveries."
According to OPECNA, this is the second time that Sonatrach has used tendering when awarding energy sector contracts. The same process was employed in October when a Japanese consortium was granted a $325 million deal covering works at the Algerian Hassi R'mel gas fields.
Sonatrach plans to use the system again next February when awards six exploration blocks in the northern and southern regions of the country.