Japanese/US firms tie up In Amenas contract

11 November 2002

The contract to build gas and condensate production facilities and related works for the In Amenas development in the Illizi basin has been formally awarded to a joint venture of Japan's JGC Corporationand Kellogg Brown & Root of the US, for $745 million. The venture was selected for the scheme in mid-2002, ahead of rival bidder Bechtel of the US. The client is a partnership of BPof the UK and state energy company Sonatrach. The final terms of the agreement between BP and Sonatrach are scheduled to be signed in the next few weeks (MEED 19:7:02).

The In Amenas development will span four fields covering an area of more than 2,750 square kilometres close to the Libyan border. The engineering, procurement and construction (EPC) contract will include gas processing facilities, product pipelines and infrastructure. Pipeline-grade gas, liquefied petroleum gas (LPG) and condensate will be piped some 110 kilometres to Sonatrach's pipeline grid at Ohanet. The project is set for completion in three years.

Output from the area is expected to reach 20 million cubic metres a day of gas and 45,000 barrels a day of liquids. The gas will be marketed entirely by Sonatrach. The terms for BP's remuneration and the arrangements for the marketing of the liquids produced at In Amenas have yet to be disclosed.

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