Sonatrach hires Saipem and CHEC for Algerian phosphate build

Algeria’s Sonatrach and the Algerian Fertilizers Company (AFC) on 12 August signed engineering, procurement and construction contracts with Italy’s Saipem and China Harbour Engineering Company (CHEC) for the first phase of the country’s Integrated Phosphate Project (PPI). The ceremony at Sonatrach’s Algiers headquarters was chaired by Hydrocarbons Minister Mohamed Arkab and attended by the Chinese and Italian ambassadors.

Saipem’s Limited Notice to Proceed is worth approximately €500 million ($580 million) and covers EPC of the phosphate processing and fertilizer production facilities at Bled El Hadba (Tébessa province) and Oued El-Kebrit (Souk Ahras province). CHEC will build the associated port facilities at Annaba. The full EPC contract with Saipem is still being finalised.