(Updates with more details of Sonatrach plant, Total jv, Almet consortium's contract and jv, other details)
ALGIERS (Thomson Financial) - The Algerian government has awarded contracts to Total SA and an international consortium, Almet, worth a combined 4 bln usd, to build two new petrochemical plants as part of a 10-unit petrochemical complex with an estimated investment of 12 bln usd.
'These two plants are part of a programme of about 10 petrochemical units with a total cost of 12 bln usd, of which five are still to be built', said the vice-president of Algerian state oil company Sonatrach's downstream activities, Abdelhafid Feghuli, last night after the two contracts were signed.
French oil company Total signed a contract worth 3 bln usd (2.18 bln eur) to build an ethane cracker at Arzew in western Algeria to manufacture various types of polyethylene and ethylene destined for domestic and international markets, Sonatrach said.
A joint venture will be formed for the ethane cracker plant, in which Total will hold 51 pct and Sonatrach will hold 49 pct. Total was competing with Saudi group Sabic for the order, but the French group won the order as it offered Sonatrach a 70 pct share of the profits, while Sabic only offered 55.12 pct.
The Almet consortium comprises Kuwaiti company Qurain, German company Lurgi, Trinidad's PPSL, Japan's Mitsui, and Algerian company Sotraco. Sonatrach awarded Almet the contract to build a methanol production facility at the Arzew industrial zone. The amount of the investment is estimated at 1 bln usd, and annual production is estimated at 1 mln tonnes of methanol, destined for the international market.
A joint venture will also be formed for this plant, in which Sonatrach will hold 49 pct and Almet 51 pct. Almet has offered Sonatrach a 76.09 pct share of the profits.
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