Egyptian-led venture to expand Algerian oil field

A consortium led by Petrojet, a subsidiary of state-owned Egyptian General Petroleum Corporation, has signed a $1 billion contract to start developing the second phase of the Hassi Bir Rekaiz oil field in Algeria.

The scope includes the construction of a central processing facility with a capacity of 32,000 barrels per day, along with associated infrastructure, including 217km of pipelines, the Egyptian cabinet said in a statement.  

The other consortium member is Italy’s Arkad.

The consortium will work on the design, supply, construction, experimental operation and full operation of the oil field’s second phase, boosting its crude production capacity.

The field, which is located in the south of Algeria, is operated by Groupement Hassi Bir Rekaiz, a joint venture between Algeria’s Sonatrach and Thailand’s PTT Exploration and Production. Oil was first discovered in June 2022 and current production is 13,000 barrels per day.

“The contract win follows a strong competition in a global tender, reflecting the growing confidence in the capabilities of Egyptian companies,” petroleum and mineral resources Karim Badawi said in a statement.

Algeria was the world’s ninth-largest natural gas producer in 2023 and the 14th largest for crude, according to the International Energy Agency.

The North African nation offered seven oil and gas blocks earlier last month in a new licensing round slated to conclude by January 2027. 

In September 2025 New Cairo-based Elsewedy Electric said it would invest nearly $2.5 billion in renewable energy and other projects in Algeria.

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