Egypt’s state-owned engineering firm Petrojet has won an engineering, procurement, and construction (EPC) contract worth nearly $1 billion for Phase 2 of Algeria’s Hassi Bir Rekaiz oilfield. The project, awarded in partnership with Saudi Arabia’s Arkad Engineering & Industries, marks one of the largest upstream awards in North Africa this year.

Located in the Berkine Basin of eastern Algeria, the Hassi Bir Rekaiz field is operated by Sonatrach and its joint-venture partners. The second-phase development includes drilling new wells, building central processing facilities, flowlines, and export pipelines to expand the field’s production capacity.

Petrojet’s success underscores the growing role of regional EPC contractors in Africa’s oil and gas sector, as Algeria increases investment to boost output and modernize its infrastructure. The contract is Petrojet’s largest international award to date and reflects the company’s ambition to strengthen its presence across North Africa and the Middle East.

The project comes as Algeria pushes to attract new foreign investment into its upstream sector after several years of under-investment. Industry analysts say the development could significantly contribute to Algeria’s production goals and its long-term energy export strategy.

For Arkad, the deal adds another milestone in its expanding international portfolio. Both firms are expected to mobilize teams in Algeria later this year, with construction set to run for about three years.

The award demonstrates Algeria’s focus on regional partnerships rather than relying solely on Western contractors, while also highlighting the competitiveness of Middle Eastern EPC companies in African oil projects.

Petrojet’s performance on this high-value project will be closely watched, as successful execution could lead to further contract opportunities in Algeria, Libya, and neighboring markets.