A British specialist engineering company is supplying 15 gas turbine units to Algeria's oil pipeline sector in a contract worth approximately 25 million British pounds ($45 million) with support from the Export Credits Guarantee Department (ECGD).
Demag Delaval Industrial Turbomachinery Ltd (DDIT) is supplying the equipment for Phase 2 of the OZ2 Oil Pipeline which will transport oil from Haoud El-Hamra to the refinery and port town of Arzew, following the route of the existing OZ1 Oil Pipeline which was built approximately 30 years ago.
This contract to supply 15 gas turbine units - which DDIT won in 2003 - is part of the overall contract to build six pumping stations on the pipeline awarded by Sonatrach - the Algerian national oil and gas company, to the French/Italian consortium - Spie-Capag-Saipem GEIE, which has sub-contracted DDIT.
Under the reinsurance deal backed by ECGD, loans provided by a pool of banks, of which Societe Generale is the arranger and agent, will be used by the Algerian national oil and gas company to pay for the six pumping stations which will transmit oil through the pipeline which is due for operation in 2005.
ECGD is the UK's export credit agency. A separate Government Department reporting to the Secretary of State for Trade and Industry, it has more than 80 years' experience of working closely with exporters, project sponsors, banks and buyers to help UK exporters of capital equipment and project-related goods and services. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
