Petrofac PLC (LON:PFC) saw its shares rise on Wednesday afternoon after the oil services group said it has been awarded a contract worth around US$1bn with Groupment Isarene, the joint operating group set up by Sonatrach, Petroceltic and Enel, for the Ain Tsila Development Project in Algeria.
The FTSE 250-listed firm pointed out that the Ain Tsila field, which is located around 1,100 kilometres south-east of Algiers, will produce gas, LPG and condensate for the local Algerian market and for export.
It said, under the terms of the 42-month contract, the lump-sum engineering, procurement and construction (EPC) project scope of work includes commissioning, start-up and performance testing.
Petrofac's EPC activities in Algeria include Sonatrach's Tinrhert Field Development Project, along with the Alrar and Reggane projects that commenced production last year.
E S Sathyanarayanan, Petrofac’s group managing director, Engineering & Construction, commented: "This award builds on Petrofac's significant track record in Algeria where we have been operating successfully for more than 20 years, with a strong record for project execution and the development of local capability.”
In late afternoon trading, Petrofac shares were 2.9% higher at 479.10p.