A total of 12 contractors have applied to prequalify for the $2bn project to develop the Ain Tsila gas and condensate field, according to a source close to the project.

“It is not yet known if all 12 will be approved,” the source said.

The concession is operated by Ireland’s Petroceltic and Algerian state-owned energy company Sonatrach.

Italy’s Enel also holds a stake in the project.

The invitation to tender for the engineering, procurement and construction (EPC) contract is expected to occur in the second quarter of 2015 and the project is on track to deliver first gas in the fourth quarter of 2018, according to a statement released by Petroceltic on 27 April.

The scope for the project includes:

• Drilling of 124 vertical wells
• Gas central processing facility (CPF)
• Water separation
• Condensate and liquefied petroleum gas (LPG) recovery units
• Gas compression unit
• Export pumps
• Export pipeline (100 kilometres) to the Tin Fouye Tabankort (TFT) field for connection into the Algeria Gas Transmission System
• Associated facilities

The Ain Tisla gas field is located in Algeria’s Isarene permit in blocks 228 and 229a.

The field is estimated to hold reserves of 2.1 trillion cubic feet (cf) of gas, 67 million barrels of condensate and 108 million barrels of LPG.

The gas condensate field is expected to be developed over a period of 30 years, during which 124 wells will be drilled. The field will initially start production from 18 vertical wells. Gas will be produced via a new gas-processing plant at an annual average plateau rate of 355 million standard cubic feet a day. Production is expected to remain stable for 14 years.