Petrofac, the UK-headquartered oil field services company, announced on Thursday that its joint venture with Cha’s China Huanqiu Contracting & Engineering Corporation (HQC) has bagged an $1.5 billion engineering, procurement and construction (EPC) contract for a petrochemical project in Algeria.
The company said in a press statement that the JV was notified of a conditional award by STEP Polymers SPA, wholly-owned subsidiary of Algerian national oil company Sonatrach.
The downstream project will form part of the Arzew Industrial Zone, located west of Algiers.
The contract scope includes design and build of two major integrated processing units - a new propane dehydrogenation unit and polypropylene production unit - associated utilities and infrastructure for the site.
The project is expected to produce 550,000 tonnes of polypropylene per year.
The contract award forms part of the $1.5 billion of opportunities described by Petrofac as being at preferred bidder stage in its December trading update. Petrofac’s share of the contract value is over $1 billion.
(Writing by Anoop Menon; Editing by Bhaskar Raj)