Algeria signs $1billion oilfield deal as Europe scrambles for new energy suppliers
Algeria has signed a more than $1 billion deal to expand the Hassi Bir Rekaiz oilfield, as the North African producer moves to raise output, boost exports and strengthen its position in global energy markets.
Black News 
Algeria has signed a more than $1 billion deal to expand the Hassi Bir Rekaiz oilfield, as the North African producer moves to raise output, boost exports and strengthen its position in global energy markets.
- Algeria has signed a $1 billion-plus deal to expand the Hassi Bir Rekaiz oilfield, aiming to boost crude production and exports.
- State-owned Sonatrach awarded the EPC contract to a consortium including Egypt’s Petrojet, Italy’s Arkad and Thailand’s PTTEP.
- The project will add processing capacity of about 31,500 barrels per day and is expected to be completed within 39 months.
- The expansion supports Algeria’s broader push to attract investment, increase output and strengthen its role as a key energy supplier to Europe.
State-owned energy giant Sonatrach signed the engineering, procurement and construction (EPC) contract on Tuesday with a consortium made up of Egypt’s Petrojet and Italy-based Arkad, in partnership with Thailand’s PTT Exploration and Production (PTTEP), which already operates the field alongside Sonatrach.
The project will launch the second phase of development at the Hassi Bir Rekaiz field in Algeria’s southeastern Berkine Basin, a major hydrocarbon region near the borders with Libya and Tunisia.
Under the agreement, the consortium will construct a crude oil processing facility with a capacity of about 31,500 barrels per day, alongside associated gas treatment and produced water infrastructure. The project is expected to be completed within 39 months.
The expansion is part of Algeria’s broader push to increase hydrocarbon production as global competition for reliable energy supplies intensifies.
Production at Hassi Bir Rekaiz began in 2022 following an earlier development phase launched in 2019. That initial phase lifted output to roughly 17,000 barrels per day.
Algeria now aims to raise production from the field to around 30,000 barrels per day by 2029, with long-term targets reaching 60,000 barrels daily.
The project will also involve drilling new wells and building transport infrastructure to improve recovery rates and operational efficiency.
The deal comes as Algeria seeks to deepen ties with international energy companies and attract more foreign investment into its oil and gas sector.
Alongside the EPC agreement, Sonatrach signed a memorandum of understanding with the Egyptian General Petroleum Corporation (EGPC) to cooperate in the marketing of crude oil and petroleum products.
Algerian Energy Minister Mohamed Arkab, who attended the signing ceremony with Egypt’s Petroleum Minister Karim Badawi, said the agreements reflected growing economic cooperation between African and Arab countries.
The investment also reinforces Algeria’s ambition to position itself as a strategic energy supplier to Europe, particularly after the Russia-Ukraine war reshaped global energy flows and increased European demand for alternative suppliers.
Algeria is one of Africa’s largest gas exporters and supplies natural gas to Europe through pipelines linked to Spain and Italy. The country has accelerated investment in upstream oil and gas projects in recent years while introducing reforms aimed at attracting international investors.
Authorities are also promoting the upcoming “Algeria Bid Round 2026” licensing round as part of efforts to open more hydrocarbon assets to foreign companies.
The Hassi Bir Rekaiz expansion is expected to support Algeria’s export revenues and strengthen its role in a highly competitive global energy market.
