Sonatrach awards ABB Lummus a pipeline renovation contract

Algerian state oil and gas company Sonatrach has awarded a $70 million contract to the Swiss ABB Lummus Group for the extension and renovation of oil pipeline pumping stations.

Aug. 3, 2001

By an OGJ Online Correspondent

ALGIERS, Aug. 3 -- Algerian state oil and gas company Sonatrach awarded a $70 million contract to the Swiss ABB Lummus Group for the extension and renovation of oil pipeline pumping stations.

The deal is part of government efforts to increase Algeria's crude oil transportation capacity to 1.5 million b/d by 2004, compared with less than 1 million b/d now.

The stations are located along the pipeline linking Haoud el Hamra, in the south of the country, to the port of Skikda.

ABB Lummus won the contract in a tender offer. Other bidders were Italy's Bentini Costruzioni and SNC-Lavalin of Canada.

The project, due to be completed in 30 months, entails the installation of a new pumping station at Biskra and the renovation of three other units at El Oued, Batna, and Ouargla.