Petrofac Ltd on Thursday said a joint venture that it leads has been selected for a $1.5 billion petrochemical engineering, procurement and construction project in Algeria.

Petrofac shares rose 12% to 74.29 pence each on Thursday morning in London. The stock still is down 53% over the past 12 months.

The award for the contract was by Step Polymers SPA, which is a fully-owned subsidiary of Sonatrach Spa, Algeria’s national state-owned oil company. It is a downstream project that will form part of the Arzew Industrial Zone in the west of Algiers for Algeria’s energy strategy. Petrofac said it has a 25-year track record in the north African country, it noted.

The total value of the contract is about $1.5 billion, with Petrofac’s share about $1 billion.

Elie Lahoud, chief operating officer for Petrofac’s Engineering & Construction division, said: ‘As our client responds to the world’s increasing demand for petrochemical products, we are looking forward to developing our breadth of experience in-country, through the safe and timely delivery of this project.’

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