Petrojet consortium wins $1.1bn oil contract in Algeria
22 October 2025
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A consortium of Egypt’s Petrojet and Italy’s Arkad has been awarded a $1.087bn contract for the second phase of the Hassi Bir Rekaiz oil field development project in Algeria.
The consortium is led by Petrojet and the client is Groupement HBR, a joint venture of Algeria’s national oil and gas company Sonatrach and Thailand’s PTTEP.
The scope of work includes the construction of a central processing facility with a capacity of 31,500 barrels a day (b/d), along with associated facilities and pipeline networks extending over 217 kilometres.
It also includes the construction of a power distribution station and storage tanks.
In a statement, Petrojet said: “This award represents a significant step forward in strengthening Petrojet’s presence in the Algerian market and reaffirms its position as a leading regional [engineering, procurement and construction] EPC contractor delivering integrated, world-class energy projects.”
Groupement HBR, which operates the Hassi Bir Rekaiz oil and gas concession, tendered the design contract for the second phase of the field development project in August 2023.
HBR started production from phase one of the project in June 2022.
China Petroleum Engineering & Construction Corporation executed EPC work on the first phase of the field development project. The contract was signed in 2020, with a value of $116m.
The production target for phase one was 13,000 b/d of oil.
The project site, in the eastern part of Algeria, contains blocks 443a, 424a, 414ext and 415ext.
PTTEP and its partners found oil and gas in 10 out of 11 exploration wells drilled in the 1,916-square-kilometre area between 2013 and 2016.
Algeria oil and gas sector
Project activity in Algeria’s energy, industrial and manufacturing sectors is steadily building as the country focuses on a vertically integrated strategy that leverages the exploitation of its natural resources.
In July, Sonatrach and Italian energy company Eni signed a production-sharing hydrocarbons contract estimated to be worth $1.35bn.
The contract covers the exploration and exploitation of the Zemoul El-Kebir concession area, located in the Berkine Basin, approximately 300km east of Hassi Messaoud.
The deal with Eni is the latest of several high-profile agreements that Sonatrach has announced with international oil and gas companies.
In June, Algeria awarded five out of the six oil and gas exploration licences it offered during its 2024 bidding round, a move viewed as a success by stakeholders in the country’s energy sector.
The companies that were awarded blocks included France’s TotalEnergies, state-owned QatarEnergy, Eni and PTTEP.
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