Companies vie to win $2bn Ain Tsila contract

12 May 2015

Firms from Europe, South Korea and China are among those seeking prequalification approval

  • It is not yet known whether all the companies will be approved to bid
  • Four consortiums are bidding as well as seven individual companies
  • The invitation to tender for the contract is expected to be issued in the second quarter of 2015

Companies from Europe, South Korea and China are seeking prequalification approval ahead of bidding on the Ain Tsila field development project.

A full list of the companies bidding on the project consists of:

It is not yet known if all the companies will be approved to bid on the tender.

The concession is operated by Ireland’s Petroceltic and Algerian state-owned energy company Sonatrach.

Italy’s Enel also holds a stake in the project.

The invitation to tender for the engineering, procurement and construction (EPC) contract is expected to occur in the second quarter of 2015 and the project is on track to deliver first gas in the fourth quarter of 2018, according to a statement released by Petroceltic on 27 April.

The scope for the project includes:

  • Drilling of 124 vertical wells
  • Gas central processing facility (CPF)
  • Water separation
  • Condensate and liquefied petroleum gas (LPG) recovery units
  • Gas compression unit
  • Export pumps
  • Export pipeline (100 kilometres) to the Tin Fouye Tabankort (TFT) field for connection to the Algeria gas transmission system
  • Associated facilities

The Ain Tsila gas field is located in Algeria’s Isarene permit in blocks 228 and 229a.

The field is estimated to hold reserves of 2.1 trillion cubic feet (cf) of gas, 67 million barrels of condensate and 108 million barrels of LPG.

The gas condensate field is expected to be developed over a period of 30 years, during which 124 wells will be drilled. The field will initially start production from 18 vertical wells. Gas will be produced via a new gas-processing plant at an annual average plateau rate of 355 million cf a day. Production is expected to remain stable for 14 years.

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