JGC/KBR selected for In Amenas

19 July 2002

A consortium of JGC Corporationof Japan and the US' Kellogg Brown & Root (KBR)has been selected to carry out the engineering, procurement and construction (EPC) contract for the In Amenas development in the Illizi basin. The contract is expected to be priced in excess of $700 million. The Japanese/US group is understood to have narrowly underbid its closest rival, the US' Bechtel Corporation(MEED 4:2:00).

The four-field In Amenas site is being developed by the UK's BPin association with state energy company Sonatrach. Final details of the marketing of the In Amenas gas are yet to be announced. It is possible that BP may take a lead from the groundbreaking In Salah project where the company has not entered into the traditional production sharing agreement, but is marketing the gas on a 50:50 basis with Sonatrach. The In Amenas development is expected to produce around 20 million cubic metres a day of gas and 45,000 barrels a day of condensate and liquefied petroleum gas (LPG).

The JGC/KBR consortium was selected in early 2000 to provide the front-end engineering and design (FEED) for In Amenas, and is contractor for all field facilities at the In Salah project. The latest contract requires the group to construct a gathering centre, pipeline infrastructure and a gas treatment plant capable of processing 7,000 million cubic metres a year of gas. The gas, condensates, propane and butane will be taken some 115 kilometres by pipeline to tie in to Sonatrach's existing transmission system.

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