The Minister of State and Minister of Hydrocarbons, Mohamed Arkab, accompanied by the Minister of Petroleum and Mineral Resources of the Arab Republic of Egypt, Karim Ibrahim Ali Badawi, at the headquarters of the General Directorate of the Sonatrach complex, supervised the signing ceremony of the contract to initiate the second phase of the Hassi Bir Rkaiz field development project, in addition to signing a memorandum of understanding to frame talks on marketing contracts for crude oil and petroleum products, in a step that reflects the depth of the distinguished fraternal cooperation relations between the two countries and embodies the common will to enhance Arab and African cooperation and promote Strategic partnerships between countries of the continent.
The signing ceremony took place today in the presence of His Excellency the Ambassador of the Arab Republic of Egypt to Algeria, the President and Director General of the Sonatrach Complex, Noureddine Daoudi, the CEO of the Egyptian General Petroleum Corporation, the Chairman of the Board of Directors of Petrojet, the CEO of the Italian Arcade Complex, the Executive Vice President in charge of the international assets of the Thai PTT Exploration and Production Company, along with the Secretary-General of the National Federation of Petroleum, Gas and Chemical Workers, Jaroud Khallaf.
In this context, the contract was concluded in the form of engineering, supply and construction with an alliance that includes the Egyptian company Petrojet and the Italian company Arkad, to initiate the second phase of the Hassi Bir Rkaiz field development project located north of the Berkine Basin, in both the states of El Oued and Ouargla. This project, which falls within the existing partnership between Sonatrach and the Thai company PTT Exploration and Production, aims to complete a new crude oil processing unit with a production capacity of 31,500 barrels per day, in addition to integrated facilities for treating associated gases and produced water, and various associated facilities, within an estimated completion time of 39 months. This phase comes as a continuation of the first phase, which began its work in March 2019, and which aims to reach an initial production capacity estimated at 13 thousand barrels per day of crude oil.
The value of this contract is estimated at more than $1 billion, according to the data presented during the signing ceremony.
The second agreement relates to a memorandum of understanding between Sonatrach and the Egyptian General Petroleum Corporation, in preparation for concluding contracts for the sale of oil and petroleum products by Sonatrach for the benefit of the Egyptian side.
This memorandum opens new horizons for partnership in the field of energy marketing, which enhances commercial cooperation between the two sides, contributes to expanding the network of energy trade flows between Algeria and Egypt, and serves common interests in regional and international markets.
In a speech he delivered on the occasion, the Minister of State and Minister of Hydrocarbons welcomed the guests of Algeria, led by the Egyptian Minister and his accompanying delegation, stressing that this important event falls within the framework of the distinguished fraternal cooperation relations that unite Algeria and the Arab Republic of Egypt, embodying the directives of the leaders of the two countries, and also reflects the common will to strengthen Arab and African cooperation and promote strategic partnerships between the countries of the continent. Arkab explained that the Hassi Bir Rkaiz field development project, in its second phase, will contribute significantly to raising Algeria’s production capabilities and improving the efficiency of processing operations, thus enhancing its position as a reliable energy supplier and expanding its export capabilities in global oil markets.
The Minister highlighted that this investment dynamism comes in a promising economic and legislative context, prepared by the profound reforms initiated by the state, especially through Law No. 19-13 related to hydrocarbons, and Law No. 22-18 related to investment, which established a modern and stimulating legal framework based on transparency and enhances the attractiveness of investment in the hydrocarbons sector and related sectors. On this occasion, he called on all partners, especially Egyptian companies, to seize the investment opportunities available in Algeria, and to actively participate in the “Algeria Bid Round 2026”, which is organized by the National Agency for the Valuation of Hydrocarbon Resources with an effective contribution from the Sonatrach group, stressing that all conditions are prepared to receive new projects in the various links of the energy value chain.
Arkab stressed that this project is an additional step within Sonatrach’s strategy aimed at expanding its production capabilities and valuing its energy resources, through balanced partnerships that combine national competencies and international expertise, in a way that supports the added value of the national economy and contributes to achieving sustainable development. He also appreciated the efforts of all Sonatrach executives and workers for their continued commitment to accompanying strategic projects, reiterating Algeria’s commitment to continuing to develop its international partnerships in the context of transparency and mutual benefit, ensuring its energy security, raising its reserves and strengthening its position in the global energy market.
