Petrofac has confirmed it has won a £0.75 billion (US$1.2 billion) contract in Algeria for engineering, procurement and construction (EPC) services.

Petrofac’s share price was up 2.7 per cent at 1,661 pence on the news (1415 hrs).

The contract to develop the southern fields in the ‘In Salah’ development was awarded from In Salah Gas Group – a combined venture between BP, Sonatrach and Statoil.

There are four fields to be developed: Garet el Befinat, Hassi Moumene, In Salah and Gour Mohmoud.

Maroun Semaan, group chief operating officer for Petrofac said this latest contract is the company’s sixth EPC project in Algeria.

He added, ‘It further demonstrates our commitment to supporting the country's developments in the energy sector.

‘We have recently completed a similar project in the region for the same customer with success, and believe this new award reflects our dedication to this strategically important market where we maintain excellent relationships with both our customers and local construction partners.’

The FTSE 100-listed oil & gas servicing specialist is tasked with developing a new central production and gas gathering facility, comprising two dehydration trains with the capacity to produce around 16.8 million cubic metres of gas a day.

It must also complete around 300km of pipelines for gas collection from the in-field wells and export to the existing Krechba facility.

Brownfield modifications will also be undertaken at the existing Reg facilities with an additional dehydration train plus modifications for future operation of the compression facilities.