Petrofac wins slice of $650m Algerian contract

Oil and gas services group Petrofac has won a share of a $650 million (£405.2m) contract in Algeria.

The firm, along with Italian contractor Bonatti, will provide engineering, procurement and construction work to extend the life of the Alrar gas field, which has been in operation since 1987.

Shares in Petrofac, which has Scottish bases in Aberdeen and Montrose, rose more than 3 per cent in early trading following the announcement.

Subramanian Sarma, managing director of the group’s onshore engineering and construction business, said the deal, from Algerian state-owned Sonatrach, “builds on Petrofac’s long history of successful execution in Algeria where we have been operating successfully for more than 15 years”.

Petrofac’s existing work in the north African state include a field development project for a partnership involving BP, Sonatrach and Norway’s Statoil.