Saipem SpA (Milan, Italy; www.saipem.com) has been awarded a front-end engineering design (FEED) contract by Sonatrach Petroleum (London, U.K.; www.sonatrach.co.uk), related to the phosphate integrated project for fertilizer production in Algeria.
The contract was awarded through a competitive dual FEED process, which provides for design work to be conducted by both Saipem and a competing operator. Sonatrach will then select the best technical and economic solution between the two and will proceed with the direct award of the EPC (Engineering, Procurement and Construction) contract for the execution of the designed project.
The awarded dual FEED contract includes the front-end engineering services for the design of a new industrial complex, consisting of the phosphate mining infrastructure in the Bled El Hadba area, and process and ancillary units supporting fertilizer production in the Oued Keberit area. The scope of work also includes the upgrading of the Annaba port for the products export and the construction of railway sections connecting the extraction and production facilities to the main railway line.
This is the first integrated project in Algeria in the field of mining extraction and fertilizer production. It will contribute to diversifying the Algerian economy and strengthening the country’s position in the global fertilizer market. Once operational, the plants will be capable of extracting 10 million tons of phosphate and producing 6 million tons of fertilizers annually.
Saipem has been present in Algeria since 1968 and has overtime developed infrastructure for hydrocarbon treatment and transportation, power generation plants, as well as oil well drilling. The award of this contract thus marks the beginning of a new phase for Saipem in a country and with a client historically strategic for the company. Additionally, it confirms Saipem’s positioning in the integrated fertilizer project sector, thanks to a unique combination of engineering and technological expertise in infrastructure and processing systems.