Algeria's Sonatrach has granted JGC Corp. a $1.4 billion contract to increase production at its biggest gas field in Hassi Rmel.This is the second contract for JGC this year, Reuters reports.

The first contract involved the boosting of output at Algeria's biggest oil field in Hassi Messaoud, awarded in March for $339 million.The Engineering Procurement and Construction (EPC) contract includes the installation of equipment to enhance the Hassi Rmel gas field which produces half of Algeria's gas output.Fourteen international companies took part in the bidding.

The Hassi Rmel gas field is located in the vicinity of Hassi R'Mel village, 550 kilometres (340 mi) south of Algiers. The gas field extends 70 kilometres (43 mi) from north to south and 50 kilometres (31 mi) from east to west.

Algeria has been affected by the decline in world oil prices and has made effort to attract energy investment to help develop new fields and boost existing production.

The Algerian government has said it plans to develop existing fields such as Hassi Rmel, Hassi Messaoud, Berkine and El Merk to boost oil and gas production.

According to Sonatrach's CEO, Amin Mazouzi (photo), Algeria's gas output is estimated at 132.2 billion cubic metres. It is expected to reach 141.3 bcm in 2017, 143.9 bcm in 2018, 150 bcm in 2019 and 165 bcm in 2020.

Anita Fatunji