JGC Wins a Contract for a Large Crude Oil Recovery Plant Project in Algeria

abarrelfullabarrelfull wrote on 14 Sep 2012 06:59
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23 OCT 2000

JGC takes pleasure in announcing that through the cooperation of INITEC, a Spanish engineering company, JGC has won a contract from Organisation Ourhoud to carry out engineering, procurement and construction services for a large crude oil recovery plant project in the Ourhoud oil field, Algeria. Contract signing was completed on August 10, 2000 among the parties involved.

Oranisation Ourhoud is a consortium built up by SONATRACH, operator, jointly with such partners as Cepsa, Anadarko, Burlington, Maersk, Lasmo and Talisaman, in an attempt to promote development of the Ourhoud oil field, located in the Berkine concession.

The following are some more details:

1. Delivered to :
Organisation Ourhoud, a consortium funded by seven companies; SONATRACH, Cepsa, Anadarko, Lasmo Oil (Algeria) Ltd., Maersk Oile Algerie AS, Burlington Resources Algeria Ltd., and Talisaman Algeria Ltd.

2. Constructed at:
The Ourhoud Oil Field, the Berkine concession, Algeria 800 km southeast of Algier (capital of Algeria); 310 km southeast of Hassi Messaoud.

3. Contract:
Contractual services : Design, procurement, and construction Contract form : Lump-sum, full turnkey

4. Contract price:
Approx. ¥77 billion

5. Contract price:

  • Start of oil production: January 2003
  • Scheduled completion: May 2003

6. Project Outline:
Designed to construct a plant to produce crude oil from the Ourhoud oil field, this project is mainly comprised of the following facilities.

  • Crude separation unit (84,300 BPSD x 3 trains)
  • Gas reinjection (113 MM SCFD)
  • Water injection (60,000 m3/day)
  • Gas compression (9 compressors)
  • Gathering pipeline (370 km in total length)
  • Product oil pipeline (24" x 21 km)
  • Infrastructure and cam

One of the features of this project is that it is implemented on the basis of a "Production Sharing Contract" made between SONATRACH and Western investors.

It is believed that the contract was afforded to JGC because of the client's high evaluation of JGC's long, broad experience in Algeria as well as its outstanding technical capability and cost competitiveness.

7. Others:
Rich in natural resources including oil and natural gas, Algeria extensively exports such hydrocarbon products as crude oil, petroleum products, and LNG, which account for about 90% of the country's foreign currency gained. To date, Hassi Messoud has been the center of crude oil production in Algeria. On the other hand, rapid development is under way in the region of Gadames, where highly prospective crude reserves have been found in many areas. This project is part of a development program for this region.

In Algeria, JGC has extensively worked on gas processing and other projects for more than 30 years, since being awarded a contract for SONATRACH's Alzew Refinery in 1969. On-going projects include a gas compression station in Hassi Messoud and a natural gas processing plant revamping project in Hassi R'Mel.

In 1998, JGC set up SAJEC (Société Algéro Japonaise d'Engineering et de Construction), an engineering company specializing in petroleum and gas, in a joint venture with SONATRACH and Sidem, an Algerian engineering contractor.

JGC will continue to cooperate with SAJEC, in further developing its activities to fit into the country's needs as closely as possible.


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