Sonatrach Signs L&T for Algerian Gas Plant
Algerian energy firm Sonatrach has awarded India's Larsen & Toubro a US$1 billion contract for the development of gas plant in Algeria.
The ambitious project will involve major breakbulk transport for the construction of a facility capable of producing 11 million cubic meters of gas per day. The plant will significantly increase Algeria’s gas output, which stood at a mere 135 billion cubic meters for 2018.
“The project shows that we still have gas and we can raise output in the coming few years,” Abdelmoumene Ould Kaddour, CEO of state-run Sonatrach, told Reuters.
L&T Posts Record Quarter
The win is more good news for Larsen & Toubro, India's largest engineering and construction company, which reported better-than-expected profits in the third quarter of last year, and faces the prospect of major new offshore contracts this year.
L&T posted consolidated profit for the quarter ended Dec. 31 of US$287 million, a 37 percent jump year-on-year.
The firm is also reported to be a lead runner to pick up multiple EPC contracts this year and beyond as India’s state-owned Oil & Natural Gas Corp.’s (ONGC) announced aggressive spending plans in the sector.
NOCs to Auction 66 Fields
Driving Indian oilfield development may be a directive for ONGC and Oil India to auction one-third of their 184 producing fields to private operators without charging any past costs for their discovery or development efforts.
If approved, the proposed move by the regulator would mean that ONGC should directly bid out 64 discovered fields to “new operators” under the supervision of the Directorate General of Hydrocarbons.
These 66 fields are out of the 118 smaller fields that contribute 5 percent of the country’s crude oil output of 35.68 million tonnes and natural gas production of 32.65 billion cubic meters. These fields were discovered by NOCs in the exploration basins that were given to them under nomination.
Photo: Sonatrach facility. Credit: Wikimedia