Algeria’s national oil company, Sonatrach, signed a deal worth approximately $3.7 billion, which stipulates building a new oil refinery in the western Ouargla Province, according to Kuwait News Agency (KUNA).

Sonatrach inked the deal with a consortium of Spain’s Tecnicas Reunidas and South Korea’s Samsung Engineering.

According to a statement by the company, the new refinery is estimated to have a total production capacity of 5 million barrels per year.