Saipem scoops €1.3 billion Algerian LPG contract

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.

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.

Contact Uchenna Izundu at uchennai@pennwell.com.

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