By: Oil & gas middle east

Egyptian contractor Petrojet has beaten international competition to win a $1.087 billion contract for the second phase of the Hassi Bir Rekaiz oilfield development project in Algeria, which is operated by a joint venture between state-owned Sonatrach and Thailand’s PTTEP.

According to the news report by Upstream, Petrojet will act as lead contractor in partnership with Italy’s Arkad. The project’s scope includes the construction of a central processing facility (CPF) with a capacity of 31,500 barrels per day (bpd), along with 217 kilometres of associated pipelines. Phase 2 is expected to start up as early as 2028.

The Hassi Bir Rekaiz field came onstream three years ago with targeted initial production of 13,000 bpd of oil. UK-based io consulting completed the front-end engineering and design (FEED) study work for Phase 2 of the project in the Berkine Basin.

The consultancy developed the FEED for Phase 2A, targeting capacity of 31,500 bpd, with infrastructure to expand to 63,000 bpd in Phase 2B. It also worked on integrating Phase 1 infrastructure into the new CPF and designed brownfield modifications at existing facilities for oil and associated gas exports.

Located in the eastern part of Algeria, the onshore Hassi Bir Rekaiz development covers blocks 443a, 424a, 414 extension and 415 extension, spanning a total of 1,916 square kilometres. The project includes the Semhari, Semhari East, Mouia Aissa, Rhourde Abadje, Oglat El Bachir, Bou Goufa, and Rhourd Ez Zita fields.

Sonatrach holds a 51% equity stake in Hassi Bir Rekaiz, with PTTEP owning the remaining 49%.

In Upstream’s report, the agency said Egypt’s Petroleum and Mineral Resources Minister Karim Badawi praised Petrojet’s continued international expansion, citing its success in delivering major energy and infrastructure projects across multiple countries.

Badawi said the company’s growing overseas footprint aligns with the ministry’s sixth strategic pillar, which focuses on strengthening regional cooperation and leveraging the expertise of Egyptian petroleum companies to deliver large-scale projects abroad, particularly in Arab and African markets.

The Hassi Bir Rekaiz award complements Petrojet’s ongoing cooperation with Sonatrach to establish joint manufacturing workshops. These aim to maximise added value and utilise Petrojet’s excess capacity in foreign markets, generating sustainable foreign currency revenues for Egypt’s energy sector.