Egyptian petroleum construction giant Petrojet has reportedly secured a preliminary contract valued at an estimated $1 billion to develop the crucial second phase of the Hassi Bir Rekaiz oil field project in Algeria’s eastern Berkine Basin. Reuters reported.
The major award positions Petrojet at the heart of one of Algeria’s most ambitious hydrocarbon development programs, cementing its role as a leading regional contractor in the complex Engineering, Procurement, and Construction (EPC) sector.
While final details and formal signing are pending for the preliminary agreement, the contract is slated to involve the full-field expansion required to unlock the Hassi Bir Rekaiz concession’s substantial reserves.
Phase Two of the project is the core element of the overall development strategy, targeting a significant ramp-up in production capacity. The consortium partners—Algeria’s state-owned oil and gas company Sonatrach, alongside Thai operator PTT Exploration and Production (PTTEP)—have set a target to increase output from the current Phase One level of approximately 13,000 barrels per day (bpd) to a peak production capacity in the range of 50,000 to 60,000 bpd.
This will be achieved through an extensive drilling campaign, including up to 139 additional production wells, and the construction of a new Central Processing Facility (CPF) capable of handling the increased volumes of crude oil and associated gas.
The Hassi Bir Rekaiz field, covering blocks in the prolific Berkine Basin, represents a key strategic asset for Algeria’s efforts to boost its overall oil and gas output and capitalize on current energy market stability. The field achieved first oil in 2022 through Phase One development, which tied 17 initial wells into existing regional treatment facilities. Phase Two focuses on developing eight additional satellite discoveries within the vast concession area.
For Petrojet, the $1 billion contract marks a monumental win, reinforcing its strong presence across North Africa and the Middle East.
