Sonatrach group, Algerian national company for transportation and marketing of hydrocarbons inked a study, supply, construction and commissioning contract with the Japanese company JGC Corporation and JGC Algeria Spa, the group announced, according to All Africa.

The contract provides for revamping and implementation of a new production system at the satellite units in Hassi Messaoud, three satellite units at the southeast of the country and four satellite units in the southwest.

Revamping consists in interventions on an industrial facility to modify and increase production capacity.

The project will enable the group to avoid a daily gas flare of 2mm3, strengthen recuperation and compression of associated gases transferred to the processing center in south, and successively increase crude production by 20,000b/d, TSA wrote.

After assessment of technical and financial offers by the markets commission of the Algerian group Sonatrach, GC Corporation, and JGC Algeria Spa consortium has been selected as it submitted the lowest tender estimated at $339m.