Saipem has signed a Limited Notice to Proceed with Sonatrach for Phase 1 of the Projet Phosphates Intégré in Algeria

Saipem has signed a Limited Notice to Proceed (LNTP), or “Protocole d’Accord,” with Sonatrach for the execution of Phase 1 of the Projet Phosphates Intégré (PPI) in Algeria.

Valued at approximately €500 million, the LNTP follows a letter of intent under which Sonatrach selected Saipem as the EPC contractor for the project’s first phase. The planned industrial complex will feature phosphate mining facilities in Bled El Hadba, fertilizer production process units and auxiliary facilities in Oued El-Kebrit, as well as supporting logistics and service infrastructure. Once operational, the project is expected to strengthen Algeria’s agricultural and industrial value chains and enhance its position in the global fertilizer market.

The future EPC contract will adopt a framework designed to share risks and rewards between the two parties throughout the project. During the LNTP period, Saipem will begin essential preliminary activities, including completion of FEED and detailed engineering, procurement of long-lead items, and initial project mobilization and organization, while negotiations for the final EPC contract continue.

Saipem will leverage its experience in managing complex EPC projects and fast-track programs through an integrated approach covering engineering, procurement, construction, and execution control. The company will also work with leading Algerian companies as construction partners, supporting the development of local expertise and industrial capabilities while benefiting from their knowledge of the local market.

Following Saipem’s award of the competitive FEED contract in June 2025, its selection for the PPI project marks a strategic milestone and the company’s return to Algeria. The project also strengthens Saipem’s industrial cooperation with Sonatrach and reinforces its position in the integrated fertilizer sector by combining engineering and technological expertise across infrastructure and processing.