GE wins $100m Algeria compressors order

21 April 2010

Contract award by Petrofac is part of wider $3bn-plus El-Merk oil and gas hub project

The US’ GE has won a $100m contract to supply compressors to the UK’s Petrofac as part of its El-Merk central oil and gas processing facility in eastern Algeria.

Petrofac won a $2.2bn construction deal for the processing facilities in March 2009 as part of a wider $3bn-plus scheme to build a central oil and gas processing and distribution hub at El-Merk (MEED 12:3:2010).

GE announced on 18 April that it had been awarded a $100m contract to supply three turbo compressors to process and reinject sour, or sulphur rich, gas into oilfields being operated by Groupement Berkine, the international joint venture company developing the El-Merk scheme.

GE will also supply two turbo compressors to process residual natural gas and two motor compressors to boost gas pressure at the fields, and two more motor compressors to meet other gas processing needs under the deal.

The El-Merk development includes a central processing facility, export pipelines and facilities infrastructure. The central processing facilities being built by Petrofac will be able to handle of 98,000 barrels a day (b/d) of crude oil, 28,800 b/d of gas condensates and 31,000 of 98,000 b/d of crude oil, 28,800 b/d of condensate and 31,000 b/d of liquefied petroleum gas, according to GE.

Oil and gas for the plant will to come from Algeria’s oil exploration and production concessions Block 208, operated by Sonatrach and the US’ Anadarko, Block 212, operated by Sonatrach and Italy’s Eni, and Block 405, operated by Sonatrach and the US’ Burlington.

Block 208 covers the El-Merk North, El-Merk East, El-Merk and El-Kheit Et Tesseka fields, and is to be the main site for the project.

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