Letter of intent and early worksMining and minerals
Saipem signs €500 million limited notice to proceed with Sonatrach for Algeria’s integrated phosphates project
Phase 1 joins phosphate mining at Bled El Hadba with fertiliser production at Oued El-Kebrit under a risk-and-reward EPC framework still being negotiated.
- Event
- First published on EPC Feed
- Sources
- 1 listed below
- Reading time
- 1 min
Saipem signed a limited notice to proceed (“Protocole d’Accord”) with Sonatrach on 12 August 2026 for Phase 1 of the Projet Phosphates Intégré (PPI) in Algeria, worth approximately €500 million. It follows a letter of intent through which Sonatrach selected Saipem as EPC contractor for the first phase.
The complex will include phosphate mining infrastructure in the Bled El Hadba area, process units and auxiliary facilities for fertiliser production in the Oued El-Kebrit area, and the related logistics and service infrastructure.
The full EPC contract, still under negotiation, will use a framework in which both parties share risks and rewards. During the notice period Saipem will start preparatory work, including completion of the FEED, detailed engineering, procurement of long-lead items and early mobilisation. Saipem says it plans to involve Algerian companies as construction partners; it was selected after a competitive FEED contract awarded in June 2025.
Sources
Spotted an error or have a primary source we should read? Send a correction.