• Egypt’s Petrojet wins $1.08B Algeria oil field contract
• Project includes CPF, 217 km pipelines, and infrastructure upgrades
• Phase 2 aims to double Hassi Bir Rekaiz crude output
  

Egypt’s Petrojet has won a $1.08 billion contract to develop Phase 2 of the Hassi Bir Rekaiz oil field in eastern Algeria, Egyptian media reported on Oct. 21.

The contract, awarded by Sonatrach after an international tender, covers the construction of a central processing facility (CPF) with a capacity of 31,500 barrels per day (bpd) and the laying of about 217 kilometers (135 miles) of pipelines. It also includes upgrades to existing infrastructure. Petrojet will serve as the main contractor in a consortium that includes Italy’s Arkad S.p.A.

The Hassi Bir Rekaiz field is operated by Sonatrach (51%) and Thailand’s PTTEP (49%). The second development phase is meant to boost crude oil production and exports. The project is part of Algeria’s wider effort to expand its oil sector, which produced 947,000 bpd at the end of August 2025, according to Trading Economics data.

In a related move, the National Agency for the Valorization of Hydrocarbon Resources (Alnaft) recently resumed exploration studies in the Touggourt and Berkine basins, signing two agreements with Oman’s Petrogas E&P, Ecofin Agency reported earlier this month.

The partners aim to lift production beyond current levels in the Berkine basin, where the field is located. Phase 1 output previously reached about 13,000 bpd, while front-end engineering and design (FEED) studies for Phase 2 suggest production could eventually rise to around 63,000 bpd. No start date for the new construction phase has been announced yet.

Abdel-Latif Boureima