Algeria's Sonatrach Awards $880M Drilling Tubes Deal

Reuters

ALGIERS, March 11 (Reuters) - Algeria's state energy firm Sonatrach has awarded an $880 million contract to supply oil and gas drilling tubes to four foreign firms, a document seen by Reuters on Friday showed.

The companies named in the Sonatrach document dated Feb. 21. are Germany's CCC Machinery, Dutch firm Van Leeuwen, Japan's Marubeni-Itochu, and Vallourec Tubes France.

A senior Sonatrach official also told Reuters that a list of approved foreign suppliers of oil and gas services, drilling equipment, and hydrocarbon transportation would be expanded.

OPEC member Algeria, which has been hurt by a 70-percent fall in oil prices since mid-2014, says it is determined to increase oil and gas production to sustain exports and meet growing local demand.

However, it has struggled to attract foreign oil companies in recent energy bidding rounds.

"We urge all the contractors to participate en masse in the next tenders," the source told Reuters, without saying when the next tender would be.

This week Sonatrach said it would invest $3.2 billion over four years to increase pipeline capacity as natural gas output rises from new and existing fields.

(Reporting by Lamine Chikhi; Editing by Aidan Lewis)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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