Algeria’s AinTsila Gas Project Gets Close To EPC Tender

First gas on course for 2018..Plant to have capacity to process 420MMscf/dGroupementIsarene has invitedfour companies (or consortia) to tender for the EPC contract in respect of the AinTsila gas and condensate development in Algeria.

Daewoo Engineering & Construction Co., Ltd, GS Engineering Corporation and Dodsal Engineering & Construction PTE Ltd (acting as a consortium), JGC Corporation and JGC Algeria S.p.A (acting as a consortium), and Tecnidas Reunidas SA and Bonatti S.p.A (acting as a consortium) emerged from a pre-qualification process to select a short list of EPC contractors with Algerian experience which would be capable of delivering the Central Gas Processing Facility and associated works envisaged for the AinTsila development.

Following a technical and commercial evaluation of their offers, it is anticipated that the EPC tender process will complete with an award recommendation targeted for year end 2015, with first AinTsila gas export scheduled for 2018.

The approved AinTsila plan of development envisages the production of gross reserves of 2.1 Trillion Cubic Feet of sales gas, 67 million barrels of condensate and 108 million barrels of LPG extracted from an annual average wet gas plateau rate of 355 million standard cubic feet/ day. Development drilling is due to start in Q4 2015 with a newly built rig, contracted from Sinopec, which is currently en route to Algeria. Up to 24 new wells will be drilled and 6 existing wells recompleted prior to first gas, with a production plateau of 14 years maintained by further drilling.

The scope of work for the EPC contract comprises a central processing facility, an industrial base, an administration/ accommodation base, well gathering system, and product export system. This scope of work is based on the Front End Engineering and Design (“FEED”) outputs being generated by Chicago Bridge and Iron (“CBI”) Company on behalf of the Groupement. The surface facilities have been designed to process up to 420 million standard cubic feet/day of wet gas, and transport the resultant product streams of dry gas, liquefied petroleum gas (“LPG”) and condensate to existing tie-in points in the Algerian national hydrocarbon export infrastructure.

GroupementIsarene, the joint operating organisation responsible for executing the project, was established by state hydrocarbon company Sonatrach, which holds a 43.375% interest, Irish independent Petroceltic with a 38.25% interest and Enel with an 18.375% interest,