Petrofac and Bonatti awarded Alrar Extension Project
The London-based engineering company Petrofac and its Italian partner Bonatti have been awarded by the national oil company (NOC) Sonatrach the engineering, procurement and construction (EPC) contract for the extension of the Alrar gas field in Eastern Algeria.
With this Alrar Gas Field Extension project, Sonatrach is aiming at maintaining the plateau production of this depleting gas field.
The Alrar gas field was explored in the early 1970s and developed in following.
Located in the eastern Illizi Province of Algeria, the Alrar gas field lies along the Libyan border.
In the same way, the Wafa gas field stands along the same border on the Libyan side.
Libya started to explore the Wafa gas field in 1991 with the first gas fired in 2004.
Unfortunately the boarder line position of the Alrar and Wafa gas fields, combined with the complexity of the local geology, were altering the productive development of each field and rising tensions between the two countries.
The interconnections between both fields required the Algerian and Libyan Governments to sign an agreement in September 2006 to define the rules for the full field development of the Alrar and Wafa gas fields.
From there, Sonatrach could continue to invest to develop the natural gas and condensate of Alrar field.
Petrofac and Bonatti to add gas compression station
After submitting closed bids, Petrofac and Bonatti were awarded the EPC contract for the extension of the plateau production of the Alrar gas field.
With this project, Sonatrach expects to compensate the natural pressure drop of the field after years of production.
This operation is very similar to the previous projects to add compression stations in Hassi R’mel and In Salah where Petrofac had already been involved.
In order to maintain the production of the existing Alrar gas treatment plant at the current level of 840 million cubic feet per day (cf/d) of natural gas, the Alrar Gas Field Extension Project includes:
– New gas compression station
– Revamping of the existing gas compression station
In addition Petrofac and Bonatti are due to revamp Alrar gas processing facilities in order to optimize the treatment of the condensate and liquefied petroleum gas (LPG).
For this Alrar Gas Extension project, Sonatrach is planning to invest $668 million capital expenditure.
For the execution of the contract, Petrofac will lead the partnership with Bonatti.
According to the terms of the EPC contract awarded by Sonatrach, Petrofac and Bonatti should put on stream the new Alrar gas booster and separation units in 2016.
