Saipem Signs a 700M Euro onshore contract in Algeria

Saipem Signs a 700M Euro onshore contract in Algeria

06-01-2007

Saipem, 43 percent controlled by Italian energy giant Eni, has been awarded a new onshore contract in Algeria for an oil treatment plant, located in Hassi Messaoud, some 800 kilometres southeast of Alger.

Sonatrach has awarded a consortium composed of Saipem, as leader, and the company Lead Contracting, an EPC contract encompassing the engineering, procurement and construction of a crude oil treatment and stabilisation plant (UBTS, Unité de Traitement du Brut et de sa Stabilisation).

The plant will be composed of three trains with a capacity of 100,000 oil barrels per-day each, one maintenance unit, four stocking units of 50,000 cubic meters each and a 45-km pipeline transporting oil, water and gas. Works are expected to last 37 months.

The contract has a total value of approximately EUR950 million, approximately 700 million of which is attributable to Saipem.

The project, aiming to enhance crude quality, as well as to improve safety and production rates, will contribute significantly to the production optimisation programme of Sonatrach’s Hassi Messaoud field, given the extent of the field’s reserves, their quality and the complexity of the reservoirs.

Saipem is a leader in the provision of engineering, procurement, project management and construction services for the oil and gas Industry, with capabilities in designing and executing large scale offshore and onshore projects.