Algiers, Algeria | – Algeria’s state energy company Sonatrach has awarded Japanese firm GJC a $339 million contract to help increase production at its largest oilfield in Hassi Messaoud.
The contract includes the “revamping and realisation of a new system of production in Hassi Messaoud,” the document said.
Opec member Algeria has been hit hard by the crash in world oil prices and has struggled to attract energy investments to help develop new fields and increase existing production.
Algeria’s government has said it is looking to develop existing fields such as Hassi Rmel, Hassi Messaoud, Berkine and El Merk to increase oil and gas production.
Algeria last year announced it would postpone the launch of a new bidding round for oil and gas exploration rights, seen as a signal that Sonatrach is putting its house in order as it deals with the oil price crash.
Around 30 foreign energy firms are present in Algeria, but its last energy bidding round only placed four deals. Even before the fall in oil prices cut investment plans, oil companies complained about Algeria’s offer terms and bureaucratic red tape.