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Tong Petrotech, an environmental services and technical support provider for oil and gas exploration and development, announced the award of a $150 million contract in Algeria. The company secured the bidding for two service sub-projects from Sonatrach, an Algerian state-owned energy company. They will supply technical expertise, equipment, daily consumables, as well as operations and maintenance services for various production operations at the firm’s self-operated oil fields in the region. The four-year agreement is valued at approximately 3.5 billion Algerian dinars (about $26.3 million USD), with the remaining funds paid in US dollars.
One of the sub-projects involves transporting the multi-phase mixture of oil, water, and gas produced from the oil fields directly to processing facilities. This approach eliminates the need for constructing traditional oil, gas, and water separation infrastructure at the site. Instead, the company’s innovative mixture transportation technology improves production efficiency, reduces the costs associated with ground facilities, and minimizes energy consumption and greenhouse gas emissions.
The second project focuses on treating and injecting desalinated brine from the oil fields. The process involves reinjecting desalinated water into underground reservoirs to enhance oil recovery. This technology not only extends the lifespan of the oil fields but also substantially increases the amount of recoverable crude oil.
This latest contract marks the second equipment supply and service deal awarded by Sonatrach to the company within the past eight months. In October, it secured a preliminary agreement valued at $126 million, which is pending formal signing. This contract covers providing early production facilities for new oil fields, compressor equipment for natural gas extraction at wellheads, and related services over four years.
Sonatrach is the leading oil producer in Africa, ranking 12th globally, and is also the world’s fourth-largest exporter of natural gas and the second largest exporter of liquefied petroleum gas.
As of late trading, the company’s shares traded at CNY 8.97 (approximately $1.32) after declining by 0.4%. Earlier in the day, the stock had gained more than 4%, but broader market declines dragged its performance downward. The Shenzhen tech-focused ChiNext Index was down 2.8%.
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