Algerian refinery upgrade prices due soon

25 August 2008

State energy company Sonatrach is expected to release commercial bid documents to bidding contractors by the end of September for the two major projects to upgrade the Arzew and Skikda refineries.

Bid documents are due to be released in the next few days for the $300m-400m Arzew scheme, which covers the upgrade of process units and the installation of isomerisation units to increase refining capacity by 1 million t/y, or 20,000 b/d.

Three groups submitted technical bids at the end of March for the EPC contract. They are Samsung Engineering Company of South Korea, Spain’s TR and a South Korean consortium of Hanwha Engineering & Construction and South Korea’s Hyundai Engineering Company. Commercial bids are likely to be submitted within four weeks of the commercial documents being issued (MEED 25:4:08).

Bid documents for the second, larger, project to expand the Skikda refinery, which involves the rehabilitation of existing units and the installation of several new units including a benzene recovery plant and a paraxylene production facility, will be issued in September.

Five contractors submitted technical bids in April for the contract. They are Hyundai, Samsung, Italy’s Saipem, Paris-based Technip, and TR. Commercial bid opening of the estimated $1bn contract is likely to take place in October.

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