Egypt & Algeria Sign Oil MoU as USD 1.1 Billion Project Advances

A framework agreement has been signed to enable crude oil supplies from Algeria to Egypt, alongside a separate contract for a USD 1.1 billion oil field development project in southern Algeria. The memorandum of understanding was concluded between the Egyptian General Petroleum Corporation and Sonatrach, establishing terms for Egyptian purchases of Algerian crude oil.

The arrangement is intended to strengthen energy security, increase supply flexibility, and support plans to position Cairo as a regional hub for petroleum trading. In parallel, a general contracting agreement was signed for the second phase of the Hassi Bir Rekaiz oil field development.

The project will be executed by a consortium led by Petrojet, working alongside partners including Arkad and the joint venture stakeholders Sonatrach and PTTEP.

The development will be carried out under an EPCCS model, covering engineering, procurement, construction, commissioning, start-up, and operations. Plans include the construction of a central processing facility with a capacity of 32,000 barrels per day, supported by infrastructure such as gathering stations, approximately 217 kilometres of pipelines, roads, and associated facilities.

The project contract, valued at around USD 1.1 billion, was awarded following an international tender process. Officials said the agreement reflects continued cooperation between Egypt and Algeria in the energy sector, as well as the growing role of Egyptian companies in executing large-scale projects across regional markets.