Algeria News Portal:Algeria and Egypt have taken a significant step toward deepening their energy partnership by signing a set of strategic agreements by Mohamed Arkab, Algerian Minister of Hydrocarbons, and Karim Badawi, Egyptian Minister of Petroleum. Aimed at developing the Hassi Bir Rkaiz oil field and enhancing cooperation in the marketing of hydrocarbons.

The agreements include a contract to launch the second phase of the Hassi Bir Rkaiz field development project, as well as a memorandum of understanding between Sonatrach and the Egyptian General Petroleum Corporation. This memorandum establishes a framework for future discussions on the marketing of crude oil and petroleum products, opening new avenues for commercial collaboration between the two countries.The project is being carried out within the framework of an existing partnership between Sonatrach and Thailand’s PTT Exploration and Production. The engineering, procurement, and construction (EPC) contract has been awarded to a consortium composed of the Egyptian company Petrojet and the Italian firm Arcad, reflecting a blend of regional and international expertise.

The second phase of the project aims to build a new crude oil processing unit with a production capacity of 31,500 barrels per day. It also includes facilities for treating associated gas and produced water, along with supporting infrastructure. The project is expected to be completed within approximately 39 months. Once operational, it will significantly boost Algeria’s production capacity, improve processing efficiency, and strengthen its position as a reliable energy supplier in global markets.

This initiative builds on the first phase of the field’s development, launched in 2019, which targeted an initial production capacity of around 13,000 barrels per day. Together, both phases reflect Algeria’s broader strategy to expand its hydrocarbon output and optimize resource management through balanced international partnerships.Beyond its technical and economic impact, the agreement highlights the strong and growing ties between Algeria and Egypt. It underscores a shared commitment to enhancing Arab and African cooperation, while also benefiting from recent legal and economic reforms in Algeria that aim to improve transparency and attract foreign investment.






