Egyptian engineering giant Petrojet has secured a $1.087 billion contract for Phase 2 of the Hassi Bir Rekaiz oilfield development in Algeria, another major win that reinforces Egypt’s growing industrial footprint in North Africa.
The deal, confirmed by Energy in Africa on Tuesday, positions Petrojet as the lead contractor, working in partnership with Italy’s Arkad.
The Hassi Bir Rekaiz project, located in the Berkine basin, is operated by a joint venture between Algeria’s state-owned Sonatrach (51%) and Thailand’s PTTEP (49%).
The onshore project encompasses blocks 443a, 424a, 414 extension and 415 extension and covers a total of 1,916 square kilometres within the Berkine Basin, one of Algeria’s most strategic hydrocarbon zones.
Algeria has ambitious plans to invest up to $60 billion in oil and gas projects by 2030, making this development a cornerstone of its energy strategy.
Hassi Bir Rekaiz oilfield development
The development project involves the construction of a central processing facility (CPF) with capacity of 31,500 barrels per day, along with associated infrastructure including 217 kilometres of pipelines.
In June 2022, the first phase of the project came onstream with a targeted production of 13,000 bpd.
Phase 2 is expected to start up as early as 2028, following the completion of the front-end engineering and design (FEED) study work by Io Consulting.
The planned Phase 2A targets a capacity of 31,500 bpd of oil with infrastructure to expand to 63,000 bpd in Phase 2B.
These extensions would integrate Phase 1 infrastructure into the new CPF as well as modified existing brownfield facilities for oil and associated gas exports.
Egypt’s expanding industrial Footprint in North Africa
Egypt is steadily asserting itself as a regional powerhouse in energy and infrastructure, with state-owned firms like Petrojet leading the charge.
Founded in 1975 and headquartered in Cairo, Petrojet has evolved into one of the top engineering, procurement, and construction (EPC) firms in the Middle East and Africa.
With a workforce of over 40,000 employees and operations across multiple countries, the company plays a pivotal role in the development of energy infrastructure.
Petrojet delivers end-to-end solutions across:
- Oil and gas field development
- Construction of pipelines (onshore and offshore)
- Fabrication of offshore structures
- Tank farms and process plants
- Civil works and infrastructure projects
Their services cover the full lifecycle of energy infrastructure; from design and engineering to construction and maintenance.
Petrojet’s involvement in Algeria’s Hassi Bir Rekaiz project is viewed as a milestone by Egypt’s Petroleum and Mineral Resources Minister, Karim Badawi.
He said the company’s track record in executing large-scale projects across Arab markets aligns with Egypt’s sixth strategic pillar of deepening regional cooperation and delivering high-impact infrastructure.
Complementing Petrojet’s momentum, Egyptian utility giant Elsewedy Electric recently signed a $2.5 billion agreement in Algeria.
The deal, which represents more than three times its current investment in Algeria, focuses on building an industrial base for renewable energy.
