Oil & Gas

Algeria's largest gas field, Hassi R'mel, is experiencing significant efforts to maintain its production rates and avoid future declines, as it is one of the world's largest fields, according to the Washington-based Specialized Energy Platform. To support these efforts, the Algerian company Sonatrach signed a new contract on Thursday, May 23, 2024, aimed at boosting gas production levels and supporting both local and international supplies.

Sonatrach awarded this contract to Baker Hughes, a U.S. company specializing in energy technologies and oilfield services, to develop the Hassi R'mel field. According to the energy platform, Baker Hughes, in collaboration with the Italian company Tecnimont, is working to develop the largest gas fields in Algeria and Africa. This consortium is installing facilities to ensure production levels remain at 188 million cubic meters per day.

The contract involves enhancing the gas reservoirs in the Hassi R'mel field as part of the second step of the third phase of the field's development, aimed at containing the natural depletion process. Baker Hughes will supply about 20 compressor lines and a compressor with BCL technology. These will be installed across three plants to enhance gas flows within the field, supporting Algeria's strategy to establish itself in the global energy market.

The detailed contract includes distributing pressure lines across central, northern, and southern stations, rehabilitating the existing gas collection network, and constructing three units for extracting mercury from condensate. Additionally, it involves coordinating treatment lines for production units and connecting utilities such as water networks and diesel systems. Baker Hughes will manufacture and test the compressors in Italy before installation.

The agreement specifies the completion of new booster facilities at the central station within 33 months, making the compressors operational by October 2026. Facilities at the North Station are expected to be operational by January 2027, and the South Station by April 2027. Upon project completion, gas production levels at the Hassi R'mel field will increase, allowing Algeria to meet domestic demand and fulfill international commitments, bolstering both the Algerian energy system and European energy security.