ABB Wins $215 Million Contract to Boost Oil Output in Algeria

ABB has received a contract from the Algerian oil and gas company Sonatrach to supply pumping stations and automation systems worth more than $215 million.

Two new pumping stations and support systems will be supplied to serve the 665-kilometer-long NK-1 oil pipeline linking Algerian oilfields at Haoud El Hamra with the Mediterranean port of Skikda.

"This order builds on a series of recent ABB projects that support the production of hydrocarbon energy in Northern Africa," said Veli-Matti Reinikkala, head of ABB's Process Automation division. "In close cooperation with Sonatrach, we are dramatically expanding oil and gas transport capacity in the region."

ABB's scope of supply includes engineering, procurement, construction and commissioning of the new pumping stations, terminal upgrades, and a 44-kilometer-long fuel pipeline. ABB will also provide Supervisory Control and Data Acquisition (SCADA) systems, instrumentation and electrical equipment. The project will be designed and managed by ABB's Italian unit, with construction activities carried out by a joint venture company operated by ABB and Sonatrach.

The latest project follows a recent $210 million ABB contract for natural gas compressor stations at Hassi R'Mel, Algeria. ABB has several additional projects ongoing with Sonatrach, including construction of a major oil-treatment plant in the Bir Berkine basin and a $150 million contract for TFT gas compressor stations awarded in 2004.

The NK-1 project now under way is set for completion in late 2008, and will add some 18 million tons per year to Algeria's oil transport capacity.


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