Sonatrach, Algeria’s state energy company, has awarded Japanese firm JGC Corporate a $1.4b contract to boost production at its largest gas field Hassi Rmel, Africa News reported.

The engineering, procurement and construction (EPC) contract includes the installation of equipment to boost the Hassi Rmel gas field which produces half of Algeria’s gas output, Reuters reported

The Hassi Rmel gas field is located in the vicinity of Hassi Rmel village, 550km south of Algiers. The gas field extends 70km from north to south and 50Km from east to west. The Algerian government plans to develop existing fields such as Hassi Rmel, as well as  Hassi Messaoud, Berkine and El Merk to boost the country’s oil and gas production.

This agreement was the second contract between Sontrach and JGC during 2016. Egypt Oil&Gas reported in April that the Algerian national company for transportation and marketing of hydrocarbons had inked a study, supply, construction and commissioning contract with the Japanese company JGC Corporation and JGC Algeria Spa to revamp and implement 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