Egyptian Consortium Secures $1 Billion Contract for Phase II of Algerian Oilfield

en.Wedoany.com Reported - A consortium led by Petrojet, a subsidiary of the Egyptian National Oil Company, has signed a $1 billion contract to develop the second phase of the Hassi Bir Rekaiz oilfield in southern Algeria. The project includes the construction of a central processing facility with a daily capacity of 32,000 barrels, as well as 217 kilometers of pipelines and other infrastructure.

Consortium members include the Italian company Arkad. The consortium is responsible for the engineering, procurement, construction, commissioning, and operation of the second phase, aimed at boosting the oilfield's production capacity. The field is operated by Groupement Hassi Bir Rekaiz, a joint venture between Algeria's Sonatrach and Thailand's PTT Exploration and Production, which commenced production in June 2022 with a current daily output of 13,000 barrels.

"This contract was won amid fierce competition in a global tender, reflecting the growing confidence in the capabilities of Egyptian companies," stated Karim Badawi, Minister of Petroleum and Mineral Resources. Algeria, the world's ninth-largest natural gas producer and fourteenth-largest crude oil producer, recently offered seven oil and gas blocks in a new licensing round with a deadline of January 2027. Additionally, Egypt's Elsewedy Electric plans to invest nearly $2.5 billion in developing renewable energy projects in Algeria.

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