Wedoany.com Report-Jun 26, Saipem SpA, based in Milan, Italy, has been awarded a front-end engineering design (FEED) contract by Sonatrach Petroleum, headquartered in London, U.K., for an integrated phosphate and fertilizer production project in Algeria. The contract was secured through a competitive dual FEED process, where Saipem and another operator will develop designs. Sonatrach will evaluate both submissions to select the most technically and economically viable solution, leading to a direct award of the engineering, procurement, and construction (EPC) contract.

The FEED contract covers the design of a new industrial complex, including phosphate mining infrastructure in Bled El Hadba and processing and support units for fertilizer production in Oued Keberit. The scope also includes upgrading Annaba port for product exports and constructing railway sections to connect the mining and production facilities to the main railway line.

This project marks Algeria’s first integrated initiative for phosphate mining and fertilizer production. It aims to diversify the economy and enhance Algeria’s position in the global fertilizer market. Upon completion, the facilities are expected to extract 10 million tons of phosphate and produce 6 million tons of fertilizers annually.

Saipem, operating in Algeria since 1968, has a history of developing infrastructure for hydrocarbon processing, transportation, power generation, and oil well drilling. This contract represents a new phase for Saipem in Algeria, reinforcing its long-standing relationship with Sonatrach and its expertise in integrated fertilizer projects through advanced engineering and technological capabilities.

The project supports Algeria’s efforts to strengthen its agricultural sector by increasing fertilizer production capacity, contributing to economic growth and global market competitiveness. Saipem’s involvement highlights its role in delivering sustainable infrastructure solutions tailored to the region’s needs.