Summary:

On 5 May 2026, Algeria signed a more than $1 billion agreement to expand the Hassi Bir Rekaiz oilfield to increase crude production. State-owned Sonatrach awarded the engineering, procurement, and production (EPC) contract to a consortium including Egypt’s Petrojet, Italy’s Arkad, and Thailand’s PTTEP. 

The project will add around 31,500 barrels per day of processing capacity and is expected to be completed within 39 months. It builds on earlier development phases that started production in 2022, which initially produced around 17,000 barrels per day. 

The expansion includes new wells and supporting infrastructure aimed at increasing output from the field. 

Outlook: 

With this momentum, Algeria is expected to continue accelerating efforts to fully leverage its national energy and hydrocarbon potential. This reflects a broader strategy by Sonatrach to expand production capacity and strengthen export volumes in the coming period. 

Amid ongoing geopolitical tensions and disruptions linked, in part, to instability in the Middle East, global energy markets are increasingly prioritizing supply security and diversification. In this context, Algeria stands out as one of the main regional beneficiaries of these shifts, particularly as European demand adjusts toward more stable and alternative suppliers. 

Explore our services or speak with our team of North Africa-based risk experts.