Oil & Gas

Petrofac JV wins $1.5bn contract for Algeria petrochemical plant

A Petrofac (LON: PFC) joint venture with China has won a $1.5bn contract for a petrochemicals plant in Algeria.

Awarded by a subsidiary of Algeria’s state-owned Sonatrach, the award is for engineering, procurement and construction (EPC) work at the new Arzew Industrial Zone, west of Algiers.

The facility will produce 550,000 tonnes of polypropylene per year – a diverse type of thermoplastic used in areas including the automotive sector and packaging for consumer products.

London-listed Petrofac and its JV partner China Huanqiu Contracting & Engineering Corporation (HQC) will create two major integrated processing units for propane dehydrogenation and polypropylene production.

READ MORE:  Aberdeen acquisition: Well management firm Zenith Energy snaps up recruiter Prodrill

Petrofac’s share of the contract is valued at more than $1bn – the firm said this deal is part of $1.5bn opportunities it set out in December as being at the preferred bidder stage.

CEO Tareq Kawash said: “We are proud to be supporting our customer to deliver this strategic project.

“Algeria is a core market for Petrofac and we are committed to supporting the long-term delivery of critical infrastructure as the country plays an increasingly important role as a major energy producer and moves into major petrochemical projects.”

READ MORE:  HSE takes over Valaris 121 missing persons investigation

Petrofac has been active in Algeria since 1997.

The award comes amid challenges for the firm during 2022, with issues for the engineering and construction (E&C) division leading to a $310m net loss in 2022.

But EPC has enjoyed success, with Petrofac and Hitachi Energy being awarded a clutch of deals worth around £11bn in March with TenneT for offshore renewables infrastructure in the Dutch sector.

Recommended for you

Petrofac lands EPC contract with ADNOC in the UAE

Leave A Reply

Your email address will not be published. Required fields are marked *