Algeria Agreements Develop Tender

The national hydrocarbons group Sonatrach has signed Sunday in Algiers the signing of two 2 agreements with two national companies for the purpose of carrying out a project for the development of gas fields on the outskirts of Gassi-Touil which has a set of 47 wells. Thus these two engineering project construction contracts EPC relating to the development of these fields were signed separately with the company Cosider Canalization on the one hand and the National Company of Large Petroleum Works ENGTP subsidiary of Sonatrach.The outskirts of Gassi-Touil located 150 km southeast of Hassi Messaoud comprises six 6 gas fields with a total of 47 wells and a production of about 12.3 million cubic meters per day MMSm3 j. Thus the first agreement linking the oil group to the company Cosider Canalization was initialed by Sonatrachs central director of engineering and project management Faiz Zane and Cosider Canals CEO Fethi Zerouali.The agreement concerns the creation of a collection network for the connection and production of 25 wells to the existing treatment center at Rhourde Nouss Illizi. His total gas input will be 7 MMSm3 day Zane said at the signing ceremony. With a contract value of nearly 21 billion DA this first contract is expected to be delivered in December 2020 and will include the supply by Cosider Channel of detailed engineering studies construction and assembly on site and testing and implementation. in use.The work to be carried out under the terms of the contract between the two companies will include in addition to the collection network surface installations at the wells 6 field manifolds and 5 junctions a sectioning station and a new Scada system. Zane explained. As for the second agreement signed by Mr. Zane on the one hand and the CEO of the ENGPT Messaoud Mokhnache on the other hand it relates to the realization of a collection network for the connection and putting into production 22 wells to the existing gas treatment center at Gassi -Touil. Its total production input will be 5.3 MMSm3 d.With a contractual amount of more than 32 billion DA the second contract will be completed also in December 2020. It is also expected through the terms of this EPC contract that ENGTP will provide detailed engineering studies site construction and erection and testing and commissioning in addition to carry out surface installations at the wells 4 manifolds on fields and extension of 2 existing manifolds as well as the extension of the existing Scada system detailed the same manager.Sonatrach bets on national companies to increase the integration rateIn addition it should be noted that Sonatrachs choice of national companies for the realization of these collection networks stems from its desire to achieve an integration rate of around 55 as provided by the Company Strategy for 2030 SH2030. As a reminder Sonatrach also signed in December 2017 agreements with the ENGTP GCB ENAC Infratelle and Cosider pipelines for the realization of a collection network with a total length of 330 km for the connection of 50 wells producers on the existing 154 of the gas field of Tinhert Illizi.After the signing ceremony Sonatrachs CEO Abdelmoumen Ould Kaddour told the press that the project also aimed at optimizing the companys existing facilities noting that the company should be lighter. We use existing factories we only realize the collection network to route the collected gas to Rhourde Nouss and to Gassi-touil Ould Kaddour told reporters. Looking back on the companys achievements in 2018 Sonatrachs CEO spoke of the SH2030 strategy which gives the company the option of turning it into a gas company. petrochemicals and the signing of certain contracts.We have transformed the company a lot and we have become much more dynamic. The relationships we had with the partners were not the best now the foreign partners want to work with us noted the groups CEO by anticipating stronger partnerships in 2019. Regarding offshore exploration Mr. Ould Kaddour recalled the signing of contracts made last October with ENI Eastern Interest Zone on an area of 14965 km2 and Total Zone of Western Interest on an area of 9.336 km2 estimating that the first drilling will be done in the next six 6 months.Regarding the fall in the price of a barrel of crude oil the manager has been responsible for the rise in crude oil reserves referring to the US and Saudi Arabia that flood the market. According to him this fall in prices penalizes everyone. The role of the Organization of the Petroleum Exporting Countries OPEC is precisely to balance supply and demand he said adding definitely there will be positive changes and we hope that will be as soon as possible. APS