Sonatrach group is taking a new step in its development strategy with the signing of energy agreements for the development of the Hassi Bir Rekaiz field and an agreement between Algeria and Egypt regarding the export of petroleum products. This initiative is part of the common desire to strengthen intra-African energy cooperation, according to a statement from the Algerian Ministry of Energy and Mines published on May 5, 2026.
The first agreement concerns an Engineering, Procurement, and Construction (EPC) contract concluded between Sonatrach and the Thai company PTTEP, partners in the field’s operation, as well as with a consortium composed of the Egyptian company Petrojet and the Italian company Arkad. The value of this contract exceeds one billion dollars.
The project involves the construction of a new crude oil processing unit with a capacity of 31,500 barrels per day, accompanied by facilities for processing associated gases and production water. Its commissioning is expected within 39 months and complements the first phase launched in 2019. The goal is to sustainably strengthen national production capacities.
In parallel, a memorandum of understanding was signed between Sonatrach and the Egyptian General Petroleum Corporation (EGPC) to frame future negotiations on the marketing of Algerian crude oil and petroleum products for the benefit of Egypt.
These agreements open up new commercial prospects, streamline bilateral energy exchanges, and strengthen Algeria’s position as a key energy partner in the region. They also illustrate Sonatrach’s willingness to valorize national resources through win-win partnerships contributing to the continent’s energy security.
