The Algerian state-owned company Sonatrach awarded the China Petroleum Engineering and Construction Corporation (CPECC) a $410m contract to renovate and upgrade an oil refinery near the capital, Algiers. CPECC will carry out rehabilitation work at the Sidi R’cine refinery over a 24-month period, reported Reuters Africa. The project aims at building new units to bring the refinery, which was built in 1964 , up to European standards and increase its current annual output of 2.7m tons of refined petrol by 35%.

Sonatrach granted the deal to CPECC, which is affiliated with the China National Petroleum Corporation, after canceling a $972.57m initial agreement it had struck with French engineering firm Technip, as the two sides parted ways over procedural differences, according to Channel News Asia.

Algeria, which is a member to the Organization of Petroleum Exporting Countries (OPEC),  had announced modernization work at its refineries and plans to build five additional one, with the goal of increasing output by 50% by 2021. Currently, Algeria produces 30mt/y of oil refined products.