Under the terms of the front-end engineering design (FEED) contract, Amec Foster Wheeler will also select technology licensors for all three refineries.

Amec Foster Wheeler Asia, Middle East, Africa & Southern Europe group president Roberto Penno said: "Sonatrach is a long-term customer of Amec Foster Wheeler and this is a strategically important project for the Algerian Oil & Gas industry.

"We will apply our significant global refinery expertise to enable maximum efficiency of these three new refineries."

Work under the contract is expected to be completed in the third quarter of 2017.

With a capacity of five million tons per annum of Algerian crude oil each, the three refineries will feature facilities for atmospheric distillation, liquefied petroleum gas separation, hydrocrackers, desulphurisation, bitumen production, utilities, blending, effluents treatment, control room and laboratories.

The refineries will also include administrative buildings, storage tanks and shipping facilities.

Additionally, the Biskra site will comprise lubrication oil facilities.

Separately, Sonatrach reportedly announced its plan to increase pipeline capacity with an investment of $3.2bn over four-year period.

Sonatrach pipeline transportation vice-president Arbi Bey Slimane was quoted by Reuters as saying: "Sonatrach will invest $3.2bn from 2016 to 2020 to boost its transport capacity, including $530m in 2016."