The group will build an LNG facility over a period of 48 months, with capacity of 4.7 million tonnes a year (t/y) at a guaranteed LNG construction cost per tonne of AD55,071 ($893).

This equates to a total lump-sum price of AD277bn ($4.5bn).

The award is likely to be controversial; it comes only days after Sonatrach disqualified the first-ranked bidding group of UAE-based Petrofac International and Indonesia’s IKPT.

Sonatrach said it disqualified the low bidders because they and their equipment provider could not guarantee a production capacity of 4.3 million t/y within its specified price.

The commercial offers were opened on 12 July. Subsequent to the decision, Petrofac says it is seeking clarifications with Sonatrach (MEED 24:7:08).

But with the contract now signed, it now seems difficult for the award to be reversed.

A more in-depth examination of the situation will be published in MEED on 1 August.