Petrofac Ltd., the U.K. oilfield services and engineering provider, won a $1.2 billion contract to develop southern gas fields in Algeria, adding to the company’s record order book.
The award is for engineering, procurement and construction services at the In Salah Gas project, a venture between Algeria’s state oil company Sonatrach, BP Plc and Statoil ASA. The work will increase production at the fields to 9 billion cubic meters annually after 2013, Petrofac said in a statement in London today.
Petrofac said last month that it had an order backlog of about $12 billion, helping shares climb to a record this year. If BP sells its Algerian assets to pay for the Gulf of Mexico oil spill, Sonatrach will be the most likely buyer, Energy Minister Youcef Yousfi said yesterday.
“The southern fields are our sixth EPC project in Algeria,” said Maroun Semaan, Petrofac’s chief operating officer. “This new award reflects our dedication to this strategically important market where we maintain excellent relationships with both our customers and local construction partners.”
Petrofac rose 4.1 percent to close at 1,685 pence in London.
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