Egypt’s state-owned Petroleum Projects and Technical Consultancy Company (Petrojet) has received preliminary approval to serve as general contractor for the second phase of Algeria’s Hassi R’Kaiiz oil field development, a project valued at $1.087 billion, following a competitive international tender. The contract marks one of Petrojet’s largest overseas wins to date and reinforces its standing as a leading regional engineering and construction firm.
According to Algeria’s energy officials, the project will be carried out in partnership with Italy’s Arkad Spa under a Petrojet-led consortium. The development, a joint venture between Algeria’s Sonatrach and Thailand’s PTTEP, includes building a central processing plant with a daily capacity of 31,500 barrels, in addition to 217 kilometres of pipelines and associated infrastructure.
Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi described the deal as “a strategic milestone in Petrojet’s continued expansion abroad,” noting that the company’s growing international portfolio demonstrates the credibility and technical expertise Egyptian firms can now export. “We are implementing the sixth pillar of our national energy strategy—strengthening regional cooperation and enabling our companies to deliver large-scale projects across Arab and African markets,” Badawi said.
Industry analysts view the Algerian contract as both an economic and diplomatic success. “It’s not only about construction revenue,” commented energy economist Dr Leila Mansour. “It signals Egypt’s ascent as an engineering powerhouse in the Middle East and North Africa, leveraging its know-how in oil and gas to build long-term influence.”
Petrojet has maintained a significant presence in Algeria for over a decade, working on refinery and pipeline infrastructure. The new contract coincides with its plan to establish joint manufacturing workshops with Sonatrach, aimed at increasing local content and creating a regional supply chain for fabrication and maintenance works.
The Hassi R’Kaiiz project—situated in Algeria’s prolific oil-producing heartland—underscores Cairo’s drive to boost foreign-currency revenues by exporting technical services. For Petrojet, it represents not just a commercial win but a clear statement of intent: that Egyptian energy companies are ready to compete—and succeed—on the international stage.