Summary:

On 20 October 2025, Egyptian state-owned contractor Petroleum Projects and Technical Consultations Company (Petrojet) secured a $1.08 billion contract for the phase two development of the Hassi Bir Rkaiz oilfield in central Algeria. 

The project is executed under a consortium with Italy’s Arkad which will collaborate with the Hassi Bir Rkaiz joint venture between Algeria’s Sonatrach and Thailand’s PTT Exploration and Production. It includes the construction of a central processing facility with a capacity of 31,500 barrels per day, along with 217 km of associated pipelines and infrastructure. 

Egypt’s Petroleum Minister Karim Badawi highlighted the strategic importance of Petrojet’s expanding international presence, emphasizing its alignment with Egypt’s sixth strategic pillar on regional cooperation and leveraging technical expertise.  

The contract also aims to strengthen Petrojet’s collaboration with Sonatrach through joint manufacturing workshops aimed at maximizing resources and generating sustainable economic benefits. 

Outlook: 

The Hassi Bir Rkaiz project demonstrates Algeria’s strategy to attract major international collaborators and leverage its energy potential. The contract also reflects a continuation of Algeria–Egypt collaboration in the energy sector. 

The deal will help to accelerate Algeria’s development of strategic oilfields, expand production capacity, and create opportunities for technology transfer, workforce development, and industrial growth.  

Collaboration with Petrojet further opens doors for additional regional and international partnerships, enabling Algeria to diversify its energy collaborators and strengthen its regional influence in North Africa and the Mediterranean energy markets. 

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