Saipem signs €500m LNTP with Sonatrach for Phase 1 of Algeria PPI

Transaction and scope

Saipem has signed a Limited Notice to Proceed (LNTP) with Sonatrach for the execution of Phase 1 of the Projet Phosphates Intégré (PPI) in Algeria, under an LNTP valued at approximately €500 million.

Project components

The 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, and the related logistics and service infrastructure to support operations.

Early works and contract structure

The LNTP enables Saipem to commence preparatory and critical activities—including FEED completion, detailed engineering, procurement of long‑lead items and preliminary mobilization and organization—while the parties negotiate and finalize the full EPC contract. The full EPC will use a contractual framework designed for shared risks and rewards during execution, covering the LNTP period.

Local involvement and strategic significance

Saipem will involve leading Algerian national companies as construction partners to foster local skills and leverage local knowledge. The selection follows a competitive FEED contract awarded in June 2025 and represents Saipem’s return to Algeria and a strategic step in its integrated fertilizer project portfolio.