Petrofac has entered into two strategic contract agreements with Algerian state-owned Sonatrach.
The first is a five year contract where Petrofac will be providing a range of multi-discipline engineering design and procurement services in support of Sonatrach's upstream hydrocarbon development programme within the procedures that govern the tendering process. It is anticipated that the contract will cover the early definition of new projects, detailed engineering and services in support of project execution. Around 100 personnel will support the contract throughout its duration.
Under the terms of the second agreement, Petrofac has signed a Memorandum of Understanding with Sonatrach, committing both parties to establish an Algerian Joint Venture to undertake engineering and project execution of selected upstream and downstream developments. The Joint Venture is expected to be finalised by mid-2015 with first project activity in Q4 2015.