REG-Petrofac Limited Petrofac Limited: Petrofac led JV selected for US$1.5 billion EPC project in Algeria

PetrofacAnnouncement

18/05/2023 07:00

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   Petrofac Limited ( PFC)
   Petrofac Limited: Petrofac led JV selected for US$1.5 billion EPC project
   in Algeria

   18-May-2023 / 07:00 GMT/BST

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                                 Press Release

    

    

   18 MAY 2023

    

    

                  PETROFAC LED JV SELECTED FOR US$1.5 BILLION
                             EPC PROJECT IN ALGERIA

    

     • A Petrofac-led joint venture has been notified of a conditional award
       by STEP Polymers SPA (100% Sonatrach subsidiary) for a petrochemical
       engineering, procurement and construction (EPC) contract valued at
       approximately US$1.5 billion
     • This is a significant downstream project, which will form part of the
       Arzew Industrial Zone, located west of Algiers, supporting Algeria’s
       energy strategy
     • The award broadens Petrofac’s portfolio within the petrochemical
       sector and builds on its 25-year track record in Algeria

    

   Petrofac, leading a joint venture with petrochemical industry specialist,
   China Huanqiu Contracting & Engineering Corporation (HQC), has received
   notification of a conditional award by STEP Polymers SPA (100% Sonatrach
   subsidiary) to execute a significant petrochemical project in Algeria. The
   total contract value is approximately US$1.5 billion, with Petrofac’s
   share valued at over US$1 billion.

   The plant will be located at the Arzew Industrial Zone, west of Algiers.
   Covering the design and build of two major integrated processing units,
   the contract includes the delivery of a new propane dehydrogenation unit
   and polypropylene production unit, as well as associated utilities and
   infrastructure for the site. It is expected to produce 550,000 tons of
   polypropylene per year.

   Tareq Kawash, Petrofac’s Group Chief Executive, said: “We are proud to be
   supporting our customer to deliver this strategic project. Algeria is a
   core market for Petrofac and we are committed to supporting the long-term
   delivery of critical infrastructure as the country plays an increasingly
   important role as a major energy producer and moves into major
   petrochemical projects.”

   Elie Lahoud, Chief Operating Officer for Petrofac’s Engineering &
   Construction division, said: “The award of this major project builds on
   Petrofac’s 25-year track record of successfully supporting Algeria’s
   energy industry. As our client responds to the world’s increasing demand
   for petrochemical products, we are looking forward to developing our
   breadth of experience in-country, through the safe and timely delivery of
   this project.”

   Petrofac has been active in Algeria since 1997, when it opened its first
   office in Algiers. The company has since developed some of the country’s
   most significant oil and gas assets, with an impressive track record in
   executing projects successfully, underpinned by a commitment to supporting
   the nationalisation agenda and developing local workforces.

   This contract award forms part of the US$1.5 billion of opportunities
   described by Petrofac as being at preferred bidder stage in its December
   trading update.

   Ends

    

    

   For further information contact:

    

   Petrofac:

   James Boothroyd, Head of Investor Relations

    1 James.boothroyd@petrofac.com

    

   Sophie Reid, Group Head of Communications

    2 Sophie.reid@petrofac.com

    

   Teneo (for Petrofac):

   Martin Robinson

   +44 (0) 207 353 4200

    3 petrofac@teneo.com

    

    

    

   NOTES TO EDITORS

    

   About Petrofac

    

   Petrofac is  a  leading  international  service  provider  to  the  energy
   industry, with a diverse  client portfolio including  many of the  world's
   leading energy companies.

    

   Petrofac designs,  builds,  manages  and  maintains  oil,  gas,  refining,
   petrochemicals and  renewable energy  infrastructure.  Our purpose  is  to
   enable our clients  to meet the  world's evolving energy  needs. Our  four
   values -  driven,  agile,  respectful and  open  -  are at  the  heart  of
   everything we do.

    

   Petrofac's core markets  are in the  Middle East and  North Africa  (MENA)
   region and the UK  North Sea, where  we have built  a long and  successful
   track record of safe, reliable and innovative execution, underpinned by  a
   cost effective and local delivery model with a strong focus on  in-country
   value. We operate in several  other significant markets, including  India,
   South East  Asia and  the United  States. We  have 7,950  employees  based
   across 31 offices globally.

    

   Petrofac is quoted on the London Stock Exchange (symbol: PFC).

    

   For additional information, please refer to the Petrofac website at

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          GB00B0H2K534
   Category Code: CNT
   TIDM:          PFC
   LEI Code:      2138004624W8CKCSJ177
   Sequence No.:  244495
   EQS News ID:   1635943


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:James.boothroyd@petrofac.com
   2. mailto:Sophie.reid@petrofac.com
   3. mailto:petrofac@teneo.com


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