Construction and development activities at the Rhourde El Baguel oil field continue to support Algeria’s long-term strategy to increase hydrocarbon production and expand gas processing infrastructure. The programme, led by Sonatrach through multiple engineering contracts, includes a new LPG recovery facility, gas gathering systems, and compression infrastructure designed to improve production efficiency while maximizing associated gas utilization.
Rhourde El Baguel Oil Field Current status update (2026)
As of 2026, the Rhourde El Baguel development forms part of Sonatrach’s broader upstream investment programme, which is backed by a $60 billion capital expenditure plan for 2026-2030. The LPG recovery plant and associated field infrastructure remain strategic assets supporting Algeria’s objective of increasing hydrocarbon production and improving recovery from mature fields. The project also complements Algeria’s wider investment drive, including new developments in the Illizi Basin and the $5.4 billion Illizi South Gas Project, where on-site construction has recently commenced. Together, these projects strengthen Algeria’s gas processing capacity, export potential, and long-term energy security.
Also Read: Naftal, Sonatrach to Build LPG Pipeline along Algeria’s Mediterranean Coast
Other projects awarded alongside the Rhourde El Baguel oil field project
Alongside the Rhourde El Baguel oil field project, Sonatrach awarded another contract for the construction of a low-pressure compression unit. This contract, which also covers the construction of a collection network, will be executed by Arka.
The collection network will allow the connection of 24 new producing wells to the Tin Fouiyé Tabenkort gas field. This gas field is run by Sonatrach and TotalEnergies as a joint venture known as Groupement TFT (GTFT).
As part of this project, Arka will also work towards enabling the production plateau to be maintained at 11m cubic meters per day. This goal is consistent with the company’s international contractual obligations relating to gas.
Financed to the tune of roughly USD 170m, the Arka project will take approximately 34 months to complete.
Project fact sheet
Project: Rhourde El Baguel Oil Field Development
Location: Rhourde El Baguel, Ouargla Province, southeastern Algeria
Country: Algeria
Sector: Oil and gas
Project owner: Sonatrach
Estimated investment: Approximately $570 million
Current status (2026): Construction and field development progressing as part of Sonatrach’s upstream investment programme
Main components:
LPG recovery plant
Low-pressure gas compression unit
Gas gathering and collection network
Well tie-ins and supporting infrastructure
LPG plant processing capacity: 10 million m³ of gas per day
Expected LPG production: 1,000 tonnes per day
Expected condensate production: 300 tonnes per day
Marketable gas production: 8.7 million m³ per day
Related infrastructure:
Connection of 24 producing wells
Compression facilities
Pipeline and gathering systems
Strategic objective:
Increase gas recovery
Reduce flaring
Improve mature field productivity
Support Algeria’s gas exports
Project team
Project owner: Sonatrach
EPC contractor (LPG facility): Tecnimont S.p.A.
Compression and gathering contractor: Arkad S.p.A.
Field operator: Sonatrach
Joint venture partner (Tin Fouyé Tabankort connection): TotalEnergies
Joint venture: Groupement TFT (GTFT)
Supervising authority: Algeria Ministry of Energy, Mines and Renewable Energies
Upstream regulator: ALNAFT (National Agency for the Valorisation of Hydrocarbon Resources)
End users: Sonatrach’s domestic gas network and export infrastructure
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