MILAN, ITALY (By Saipem, 12.Aug.2026, Words: 380) — Saipem signed with Sonatrach a limited notice to proceed (LNTP) (“Protocole d’Accord”) for the execution of Phase 1 of the projet phosphates intégré (PPI) in Algeria.
The LNTP, worth approximately €500mn euro, follows a letter of intent (LOI) through which Saipem was selected by Sonatrach as EPC contractor for the execution of the first phase of the project.
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The new industrial complex will include phosphate mining infrastructure in the Bled El Hadba area, process units and auxiliary facilities for fertilizer production in the Oued El-Kebrit area, as well as the related logistics and service infrastructure. Once operational, the project will contribute to the development of Algeria’s agricultural and industrial value chains, strengthening the country’s position in the global fertilizer market.
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The full EPC contract will be based on a contractual framework which will allow both parties to share risks and rewards during the execution, including the LNTP period which will enable Saipem to start the preliminary activities that are preparatory and critical for achieving the first project milestones.
These include but are not limited to FEED completion and detailed engineering, procurement of long lead items, as well as preliminary project mobilization and organization activities, pending the negotiation and finalization of the EPC contract.
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Saipem will make available to Sonatrach its experience in the management of complex EPC projects and in the execution of fast-track programs, with an integrated approach combining engineering activities for design, procurement, construction and execution control.
Moreover, Saipem will involve leading Algerian national companies as construction partners to ensure that the project will translate into the growth of local skills and industrial capabilities, while being able to count on their knowledge and experience of the local environment.
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The selection of Saipem for this key project, after the first competitive FEED contract awarded in Jun. 2025, represents a strategic milestone, marking the company’s return to Algeria and the start of a new phase of industrial cooperation with Sonatrach, a long-standing and strategic client. In addition, it confirms Saipem’s positioning in the sector of integrated fertilizer projects, thanks to a unique combination of engineering and technological expertise in the infrastructure and process fields.
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