Italy's Bonatti signs $150 mln Algeria energy deal

ALGIERS (Reuters) - Italian firm Bonatti signed a $149.7 million deal with Algerian state energy group Sonatrach and Anadarko Petroleum Corp. on Tuesday to build oil and gas pipelines in the Algerian Sahara, Sonatrach said.

Under the 24-month engineering, procurement and construction deal, Bonatti will build three pipelines out of El Merk field, 350 km (218 miles) southeast of Hassi Messaoud oil and gas complex, Sonatrach said in a statement on its Web site.

The links will transport crude to Houd El Hamra and liquefied petroleum gas (LPG) and condensate to Gassi Touil.

Anadarko and Sonatrach are due to complete the development of El Merk field in 2012 with production capacity expected to reach 135,000 barrels per day of oil, 150,000 barrels of condensate and 30,000 barrels of LPG, the official news agency APS quoted Sonatrach's Chief Executive Mohamed Meziane as saying at the signing ceremony.