UK-based Amec Foster Wheeler has officially confirmed that it has been awarded a front-end engineering and design (feed) contract by Algerian national oil company Sonatrach for three new refineries located in Biskra, Tiaret and Hassi Messaoud.

The contract award was first reported by MEED on 18 February.

In a statement released on 8 March, Amec Foster Wheeler said the three refineries will each have capacity to process 5 million tonnes a year (t/y) of crude.

The refineries will contain facilities for atmospheric distillation, liquefied petroleum gas (LPG) separation, hydrocrackers, desulphurisation, bitumen production, blending, and effluents treatment.

Under the contract, Amec Foster Wheeler will also carry out design work for utilities, a control room and laboratories.

The Biskra site will also include lubrication oil facilities. At each of the refineries there will also be administrative buildings, storage tanks and shipping facilities.

In its statement, Amec Foster Wheeler said it would also support Sonatrach in the selection of technology licensors for all three refineries.

Amec Foster Wheeler’s scope of work is scheduled for completion in the third quarter of 2017.

A document sent to bidders by Sonatrach on 16 February said the design contract for the three refineries has been “provisionally awarded to the tenderer Amec Foster Wheeler Italy for the amount of €17.3m”.

The engineering, procurement and construction (EPC) contracts for the refineries are likely to be worth a total of about $6bn.

Technical bids were submitted in early November, evaluation began on 12 November and commercial bids were submitted earlier this year, according to a source.

According to the source, four companies submitted bids for the design contract:

• Tecnicas Reunidas (Spain)
• Amec Foster Wheeler (UK)
• Fluor (US)
• Wood Group Mustang (US)

Sonatrach decided that a single company would be asked to undertake the design work for all three refineries as they will all be designed to similar specifications.

The refineries are intended to supply refined products to the domestic market, replacing imports.

It is understood the Tiaret and Hassi Messaoud refineries may be constructed first, with the Biskra refinery being added in a second phase.

In March 2013, the government announced plans to build five refineries, including the projects at Tiaret, Biskra and Hassi Messaoud.

In addition, another refinery was planned to be built on the coast and another in the Ghardaia region, which is located in north-central Algeria.

It is understood that these two projects have been abandoned to focus on the Tiaret, Biskra and Hassi Messaoud refineries.

Originally the refineries were due to be comissioned in 2017. Due to delays, analysts now expect the facilities to come online at a later date.