Egypt’s state-owned Petrojet has been awarded a $1.1 billion oil contract in Algeria’s Hassi Bir Rekaiz oil field. Petroleum Projects and Technical Consultations Company (Petrojet) has received preliminary award on the second phase of the project. Furthermore, the deal asserts that they work as the main contractors in the oil field development project. It is to be developed by a consortium comprising Petrojet and Italy’s Arkad Spa. There is also the option to expand the joint venture between Algeria’s Sonatrach and Thailand’s PTTEP as noted by the Egyptian cabinet.
The work scope involves constructing a central processing facility with a production capacity of 31,500 barrels per day. Moreover, it involves other associated infrastructure, including 217km of pipelines. Hassi Bir Rekaiz oil field is located in eastern Algeria. It covers 1,916 square kilometres. Algeria is making great strides in developing oil in the energy sector such as the recent Algeria oil and gas contract with Saudi’s Midad Energy.
Project Factsheet
Significance
- Marks an important milestone in Egypt-Algeria cooperation in energy and expansion of regional investment.
- Enhances Petrojet’s position as one of North Africa’s leading EPC contractors to the oil sector.
- Supports Algeria’s strategy to boost oil production and attract foreign, large-scale investment.
Infrastructure:
- Facilities include a central processing unit of **31,500 barrels per day capacity.
- Laying down **217 km of oil pipelines** and other auxiliary field infrastructure.
- Situated at Hassi Bir Rekaiz covering an area of 1,916 square kilometers in eastern Algeria.
Developer/Consortium:
- Executed by Petrojet in consortium with Italy’s Arkad Spa
- Option to include either Algeria’s Sonatrach or Thailand’s PTTEP
Funding/Timeline:
- Approximate total project value of $1.1 billion
- Component of Phase Two of the emerging oil field.
- Installation expected to pass 2025–2026 with phased startup.
Significance of Petrojet’s Role in the Hassi Bir Rekaiz Oil Field Project
Petrojet’s role in the Hassi Bir Rekaiz oil field has a major significance not only to Algeria but also to Egypt. The role of the state-owned entity on the project aligns with Egypt’s goal to strengthen regional cooperation with partner countries. The remarks were noted by petroleum and mineral resources minister Karim Badawi. Other than this, it also benefits Algeria as Petrojet’s commitment in project delivery will greatly facility the oil field’s development. In September Elsewedy Electric, another Egyptian company, announced plans to invest nearly $2.5 billion in renewable energy and other projects in Algeria. Algeria has had nearly $43 billion in foreign investment over the past two years. This follows the introduction of a new law to facilitate capital inflows, according to official data.
