Algeria to develop Ain Tsila gas field

Image: The Petroceltic way

Operating joint venture Groupement Isarene and UAE-based Petrofac International LLC signed an engineering, procurement, and construction (EPC) contract on Wednesday for the development of the Ain Tsila gas field, located in the Illizi basin, Algeria.

Located around 1,100 km south-east of Algiers, Ain Tsila will produce dry gas, liquid petroleum gas and condensate for both the local market and to export. The deal aims to build a natural gas processing plant and a 125 megawatt (MW) power plant on site.

The project also includes the construction of a 110-km landfill gas (LFG) collection system to connect 30 wells for first gas productions. The contract, worth $1,03 billion, specifies an operational launch in 42 months and will allow the production of three different products: dry gas (364 million cubic feet per day); condensate (10,550 barrels per day) and liquid petroleum gas (17,117 barrels per day).

Abdelkrim Berrachiche, Project Manager for the national oil company Sonatrach, stated that the Ain Tsila field was discovered in the Isarene licensed blocks 228 and 229a in 2007. Upon development, it will allow Groupement Isarene – which comprises Sonatrach, Petroceltic, and Enel – to recover a total of 2,260 billion cubic feet of gas over a 14-year lifespan.

E.S Sathyanarayanan, Petrofac’s Group Managing Director, Engineering & Construction, commented: “This award builds on Petrofac’s significant track record in Algeria where we have been operating successfully for more than 20 years, with a strong record for project execution and the development of local capability. We are focused on delivering an effective, safe solution that meets our high standards and continues our commitment to the local energy sector.”

Leading petroleum services company Petrofac saw a 2,9 percent rise in its shares on Wednesday when the news was announced. Petrofac’s EPC activities in Algeria include Sonatrach’s Tinrhert Field Development Project, and the Alrar and Reggane projects that went into production last year.