Sonartach seals 2 strategic deals

Algeria is cementing its role as a regional energy powerhouse. State-owned giant Sonatrach signed strategic energy deals Tuesday, signaling a massive expansion in production and cross-border cooperation.

The centerpiece is a $1.087 billion contract to develop the Hassi Bir Rekaiz field. Partnering with Thailand’s PTTEP and a consortium including Egypt’s Petrojet and Italy’s Arkad, the project aims to build a massive crude oil processing unit.

Once operational, the facility will handle over 31,500 barrels per day. Notably, nearly 32% of the project’s value is dedicated to local content, boosting the national economy.

“This project aligns with our strategy to scale up production through balanced international partnerships,” stated Energy Minister Mohamed Arkab.

Parallel to the field development, Sonatrach signed a Memorandum of Understanding with the Egyptian General Petroleum Corporation (EGPC). This move paves the way for direct crude oil sales and refined products to Egypt.

As global markets fluctuate, Algiers is proving that its modernized legal framework is successfully drawing in the high-level energy investment needed for a sustainable future.