South Korea’s Daewoo to build oil facilities In Eastern Algeria

October 25, 2013 | Construction & Installation, Rigs & Vessels

Okpo shipyard of South Korea's Daewoo Shipbuilding & Marine Engineering (DSME) is seen in Koeje ...

Okpo shipyard of South Korea’s Daewoo shipbuilding & Marine Engineering (DSME) is seen in Koeje island.

Algiers, Algeria – South Korea’s Daewoo will build for Algerian-Italian consortium of Sonatrach and Eni, facilities for a Central Area Field Complex (CAFC) in eastern Algeria.

Under the contract signed here Wednesday, Daewoo will within 34 months connect 36 oil wells in the oil field located in Berkin Basin’s block 405b. The CAFC deposit is expected to produce 32,000 barrels per day (bpd) to its commissioning date in 2016.

Tasks entrusted to Daewoo by the Sonatrach/Eni consortium also include the creation of a network for crude collection, a separation and oil desalting unit, a gas re-injection station and a second station for injecting water.

The oil infrastructure costs 52.4 billion dinar (about US$643.7 million), including 35 per cent which will be paid to Daewoo.

Sonatrach and Italy’s Eni are already operating in another gas field, Ledjmet Menzel (MLE), in the Berkine Basin which began production in February.

Meanwhile, Sonatrach chief executive officer Abdelhamid Zerguine said the company would continue to work with ENI, whose subsidiary Saipem is the subject of investigations in Algiers and Milan for possible corrupt practices in relation to the obtaining of contracts in exchange for bribes.

“I think the group has shown efficiency and professionalism to operate since a long time in Algeria. We have other prospects to work together notably in the non-conventional resources,” he told the media on the sidelines of the contract signing ceremony.