The state-owned Petroleum Projects and Technical Consultations Company (PETROJET), has signed a general contractor agreement to develop Phase Two of Algeria’s Hassi Bir Rkaiz field. The contract, valued at around $1.1 billion, covers works in the El Oued–Ouargla region, located about 130 kilometers east of Hassi Messaoud in southern Algeria.
Under the agreement, PETROJET will lead the execution of engineering, procurement, construction, commissioning, and start-up (EPCCS) works for the second phase of the Hassi Bir Rkaiz development. The scope includes building a central processing plant with a daily capacity of 32,000 barrels, along with shared facilities to support current and future expansions. These facilities encompass gathering stations and an extensive pipeline network spanning approximately 217 kilometers, as well as infrastructure, roads, and auxiliary installations.
This came during the official visit of Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, to Algeria,
Badawi witnessed the signing ceremony along with Algeria’s Minister of Hydrocarbons and Mines, Mohamed Arkab, in attendance of the Ambassador to Algeria, Abdel Latif El-Laih, PETROJET Chairman Waleed Lotfy, Arkad CEO Ettore Paolini, and senior representatives from the Hassi Bir Rkaiz consortium, alongside leaders from Egypt’s petroleum sector.
The Hassi Bir Rkaiz consortium—comprising Sonatrach, Algeria’s state-owned oil and gas company, and Thailand’s PTTEP, the national upstream petroleum company got the license for the project through a global tender. PETROJET is leading the general contractor alliance in partnership with Italy’s Arkad.
Following the signing, Badawi noted that PETROJET is one of the key execution arms of Egypt’s petroleum sector, with extensive expertise and advanced capabilities enabling it to deliver major projects both domestically and internationally. He highlighted the company’s achievements in regional markets, noting that its participation in Algeria reflects growing confidence in Egyptian competencies and the ability of national companies to compete globally.
This milestone coincides with the near completion of joint studies between Sonatrach and Petrojet to establish a new Algerian–Egyptian company for localizing static equipment manufacturing in Algeria, under a cooperation protocol signed by both parties.
The planned company will produce specialized static equipment, including towers, pressure vessels, heat exchangers, air coolers, and separators, according to the American Society of Mechanical Engineers (ASME) international standards. The phased plan aims to meet local market needs and expand exports to West Africa.
Petrojet has built a strong international presence, with more than half of its recent contracts secured outside Egypt, spanning major projects in Algeria, Saudi Arabia, Iraq, Libya, Jordan, the UAE, and Kuwait. The company is positioning itself as a regional engineering powerhouse, diversifying into energy infrastructure, manufacturing, and new technologies.
