Algerian state energy giant Sonatrach and the US’ Anadarko have awarded a $150m pipeline construction contract on their El-Merk production hub in eastern Algeria.

Sonatrach named Italy’s Bonatti as the winner of the engineering, procurement and construction (EPC) deal on 28 October.

The Italian company will build a pipeline from El-Merk to Touil on the country’s eastern seaboard, as well as condensate and liquefied petroleum gas pipelines to nearby Haoud el-Hamra.

Sonatrach and Anadarko awarded the bulk of contracts for the El-Merk scheme in March (MEED 13:3:09). The US’ Bechtel submitted the lowest bid for the pipeline deal at the time, but chose not to take the deal on. Sonatrach subsequently entered into individual negotiations with other bidders.

The El-Merk development includes a central processing facility, export pipelines and facilities infrastructure. It was originally planned to have production capacity of 108,000 barrels a day (b/d) of crude oil; 55,000 b/d of condensate and 75,000 b/d of liquefied petroleum gas. The scheme is due to be completed in 2010.