Algeria’s national oil company Sonatrach, has granted a 1.4 billion dollar deal to increase production at the Hassi Rmel gas field.
The contract has been awarded to Japanese firm JGC group.
The gas field is located 550 kilometres South of Algiers and extends 70 kilometres from North to South and 50 kilometres from east to West.
The deal is the second contract for JGC Group in 2016 after the first awarded in March aimed at increasing the out put of the Hassi Messaoud oil filed considered as the biggest in Algeria.
Affected by a fall in gas prices the Algerian government says it will handle the situation by developing existing fields like Hassi Rmel, Hassi Messaoud, Berkine and El Merk.
Sonatrach officials say Ageria’s gas output is estimated at 132.2 billion cubic metres.
Algerians officials project that could the country could produce an estimated 165 billion cubic metres of gas by 2020.