Saipem Notified to Begin Algeria’s €500 Million Phosphate Project Phase

Saipem has received a Limited Notice to Proceed (LNTP) from Sonatrach for the initial phase of Algeria's Projet Phosphates Intégré (PPI). This critical step, valued at approximately 500 million euros for Phase 1, confirms Saipem's selection as the Engineering, Procurement, and Construction (EPC) contractor following a prior letter of intent. This agreement marks a significant progression for the integrated industrial complex.

The LNTP authorizes Saipem to commence preliminary activities crucial for project milestones. These activities include detailed engineering, the procurement of long-lead items, and initial mobilization and organizational efforts, all while the full EPC contract is being negotiated and finalized. The complete industrial complex is designed to incorporate phosphate extraction infrastructure in the Bled El Hadba area, along with process units and auxiliary facilities for fertilizer production in Oued El-Kebrit, complemented by associated logistical and service infrastructure.

Upon its operational launch, the Projet Phosphates Intégré is expected to significantly contribute to the development of Algeria's agricultural and industrial value chain. This initiative is set to strengthen the country's standing in the global fertilizer market. The collaboration between Saipem and Sonatrach also signifies Saipem's return to Algeria, fostering a new phase of industrial partnership with the longstanding and strategic Algerian client.