The ongoing project to overhaul the Algiers Refinery in north Algeria has reached the precommissioning phase, according to a source close to the project.

The engineering, procurement and construction (EPC) contract, worth $408m, was awarded to China Petroleum Engineering & Construction Corporation in November 2016.

The scope has included rehabilitation of the refinery’s atmospheric distillation unit and the LPG separation units as well as the design and construction of a new naphtha hydrotreating unit and a new control room.

It also included upgrading the refinery’s reforming unit and the construction of a new pumping station for the atmospheric residue (fuel oil) through an existing 13.5 kilometre pipeline.

Read more: EXCLUSIVE: Work continues on $1bn Algeria refinery project

The facility is operated by Algeria’s national oil company Sonatrach through its downstream subsidiary.

The Algiers refinery was originally built by Societe de Raffinerie d'Alger (SPA), a joint venture (JV) with Sonatrach.

It came on stream in February 1964 with a capacity of 28000 barrels a day (b/d) to process crude from the Hassi Messaoud field. This was gradually increased to about 60000 b/d by 1973.

Oil from Hassi Messaoud is conveyed to the refinery through the Haoud El Hamra-Algiers pipeline.

The refinery is oriented towards production of LPG, gasoline, kerosene, gas oil, naphtha and fuel oil.

Naphtha and fuel oil are targeted for exports while the other refinery products are supplied to central Algeria to meet the local requirements.