Naftec seeks refinery upgrade bids

21 November 2003
Naftec, the refining subsidiary of state oil company Sonatrach, has invited bids for the rehabilitation and upgrade of three refineries, as part of a programme of improvements to the country's ageing facilities. Bids are due in mid-March for the rehabilitation of the Algiers and Skikda refineries and feasibility studies on upgrading product specifications. Contractors have until mid-February to bid for the modernisation of Arzew refinery (see Tenders).

The scope of engineering, procurement and construction (EPC) contract at the 90,000-barrel-a-day (b/d) Algiers refinery includes rehabilitation of the atmospheric distillation and gas plant units and construction of a new naphtha hydrotreating unit. The contractor will also modernise the refinery's control systems. The feasibility study, scheduled for completion in four months, will look at the upgrade of both the Algiers and Arzew refineries. It will examine investment costs and projected returns, and the changes necessary to upgrade gasoline and diesel fuel production to meet European standards, which come into force in 2005.

The Skikda contract calls for the rehabilitation of two atmospheric distillation and gas plant units and the modernisation of control systems. Skikda is the country's largest refinery with capacity of 360,000 b/d. The feasibility study will examine the same upgrade issues as in the first contract.

The third tender is confined to the improvement of control systems at the 90,000-b/d Arzew refinery. The contract calls for the implementation of a direct control system and an advanced process control system.

Algeria has five refineries with total capacity of 530,000 barrels a day (b/d). The remaining two units are located at Hassi Messaoud. In May, Naftec awarded a contract to China National Oil & Gas Exploration & Development Corporation to build a new $350 million refinery in the Sbaa basin (MEED 16:5:03).

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