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Wednesday, October 14, 2020
Sonatrach CEO Toufik Hakkar stressed Monday in Algiers that the strategy drawn up by the company in terms of national integration aims to allow Algerian companies access to engineering project contracts, procurement and construction (EPC) through the development of specific specifications.
In a speech opening the work of a study day devoted to the strategy for developing local content in Sonatrach projects , Mr. Hakkar indicated that among the options considered by the group is that of “developing a specific specifications for calls for tenders for local goods and services and / or by increasing the number of EPC (Engineering Procurement Construction) contracts, in particular by means of allotment, when possible, in order to allow access to Algerian companies to these projects ”.
Addressing general managers of subsidiaries, managers of partner companies and representatives of workers in the oil and gas industries sector, Hakkar affirmed that the strategy oriented towards the emergence of national potential is likely to stimulate the industrial fabric of Algerian SMEs and SMIs, to develop skills, to transfer know-how and to develop a local “supply chain” capable of exporting and supporting the group’s projects in the long term. the international.
In addition to achieving substantial savings in foreign currency, the development strategy of the national tool of Sonatrach is, according to Hakkar, “within the framework of social responsibility and a major national actor in the sustainable development of country.”
This strategy will also benefit all stakeholders, the State first and foremost by increasing local added value and national wealth, he also specified.
Affirming that the general management of Sonatrach had created an entity endowed with all the necessary and dedicated means to carry out this policy, Hakkar stressed the objective of Sonatrach to have efficient local industrial partners who respect the principles of the code of conduct of the national hydrocarbons company.
As part of the efforts to consolidate national production potential, the CEO of Sonatrach insisted on the creation of companies with industrial and engineering capacities, explaining that in “these segments of activities where there is a lack of national capacities.”
The fields of EPC cover in particular infrastructure construction projects, gas field development, industrial works and industrial equipment installations (instrumentation, turbocharger, cooling system), it was indicated.
According to a quantified report on the 2019 financial year presented on the occasion by the group’s executives, Sonatrach concluded for an amount of around 735 billion dinars equivalent to 6 billion dollars of EPC project contracts with foreign entities (Europe, USA and Asia), or 60% of the total amount of contracts signed.
At the local level, the amount of contracts awarded to Algerian companies in the field of EPC had reached 135 billion dinars, representing only 15% of the total contracts concluded in projects for the construction of infrastructure, rehabilitation of facilities and production equipment, as well as drilling and well connection works.
The amount of service contracts including, among others, maintenance, catering, maintenance of life bases and rental of transport equipment, reached 116 billion dinars, representing 71% followed by contracts. supply (62 billion DA, representing 42%).
Among the objectives set by the Sonatrach group in terms of integrating local companies in the realization of EPC projects, is that of reaching a rate of 60% in the short term and 80% in the long term, mentioned Mr. Hakkar.
In the direction of SMEs and SMIs, instructions were sent to the general managers of subsidiaries to grant 10% of contracts to this category of companies, he also said, while announcing the establishment of a new management within the group to support and guide start-ups.
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