Japanese engineering firm JGC says that there has been “a drop in construction productivity” at an “Algeria project (satellite facility) due to strikes as well as Ramadan” – the first clear indication from a foreign firm that the ongoing political instability in Algeria has impacted the energy sector.

This is an apparent reference to the $340mn award to JGC in April 2016 of a contract to revamp and implement a new production system at seven satellite gas-oil separation plants and associated gathering systems at Hassi Messaoud, the country’s largest oilfield, albeit an aging one with declining output. The work, which involves over 500 oil-producing wells, is intended to “maintain oil production (avoid forecasted losses) by segregating production networks based on well pressure” as well as cutting the need for gas flaring, JGC says. (CONTINUED - 383 WORDS)