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Italy’s Bonatti Awarded $150Mn El-Merk Pipeline Contract

Algeria’s state hydrocarbon firm, Sonatrach, and Anadarko of the US have awarded a $149.7mn contract to Italy’s Bonatti for the construction of three pipelines leading out of the El-Merk field in southeastern Algeria to processing facilities. The 24-month engineering, procurement and construction contract requires a crude oil pipeline to be built from El-Merk to Houd El-Hamra and for LPG and condensate pipelines to be built to Gassi Touil. El-Merk is expected to come on-stream in late 2011 or early 2012 with output capacities of 135,000 b/d of crude oil, 150,000 b/d of condensate and 30,000 b/d of LPG (MEES, 10 August).

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