Algeria and Egypt seal $1 billion hydrocarbon investment deal
via Algérie3602 min read
Sonatrach, Algeria's national oil company, has signed a significant agreement with Egypt, marking a major step in its development strategy. The deal, overseen by Algeria's Minister of State, Minister of Energy and Mines, Mohamed Arkab, and his Egyptian counterpart, Karim Ibrahim Ali Badawi, includes the launch of Phase II of the Hassi Bir Rekaiz project and a strategic agreement for Egypt's hydrocarbon supply. The signing ceremony, held at Sonatrach's headquarters, highlighted the strong bilateral relations between Algiers and Cairo, with the presence of Sonatrach's CEO and senior officials from the Egyptian, Italian, and Thai oil sectors. The first agreement, valued at over $1 billion, is an engineering, procurement, and construction contract for the second phase of the Hassi Bir Rekaiz development in the Berkine basin. This contract was awarded to a consortium comprising the Egyptian company Petrojet and the Italian firm Arkade. The project will involve building a new crude oil treatment unit with a capacity of 31,500 barrels per day, along with facilities for associated gas and production water treatment. Expected to be completed in 39 months, this project complements the first phase launched in 2019, aiming to significantly boost national production capacities for Sonatrach and its Thai partner PTTEP. Additionally, a memorandum of understanding was signed between Sonatrach and the Egyptian General Petroleum Corporation EGPC to outline future negotiations for the commercia
Free daily or weekly digest of the most important stories from across 18 African countries. No spam, unsubscribe any time.
This summary was AI-generated from a story originally published by Algérie360.
Must ReadPresident Abdelmadjid Tebboune chaired a Council of Ministers meeting on May 3, 2026, addressing governance, public health, and international cooperation. The President commended the government's efforts in recovering embezzled funds, specifically thanking the Prime Minister for progress in Batna and Tissemsilt related to corruption cases in the automotive industry. A major decision was made in the health sector, with the President ordering a detailed study for the construction of a specialized anti-cancer hospital in each wilaya. This initiative aims to improve patient care and reduce travel to major urban centers. The Council of Ministers also discussed regional cooperation, particularly with neighboring Sahel countries. President Tebboune emphasized accelerating the implementation of agreements with Niger and Chad, covering strategic economic areas such as trade, energy, and infrastructure, to boost regional integration and strengthen Algeria's role in the region's development.
A high-level delegation of thirty Algerian business leaders and institutional officials is participating in the SelectUSA Investment Summit 2026 in Maryland, United States, from May 3 to May 6, 2026. This event, organized by the US Department of Commerce, promotes foreign direct investment in the United States. The diverse Algerian delegation is led by Mark Schapiro, Chargé d'Affaires of the US Embassy in Algiers. The delegation, a collaboration between the commercial service of the US embassy, the Algerian Economic Renewal Council CREA, and the Algerian Investment Promotion Agency AAPI, includes 30 members representing 24 public and private companies. Prominent figures include Kamel Moula, president of CREA, and leaders from the American Chamber of Commerce in Algeria AmCham. Their objective is to highlight dynamic Algerian economic players across strategic sectors such as energy, pharmaceuticals, digital technologies, agribusiness, steel, and startups. This participation occurs amid significant growth in financial flows between the two nations, with trade exceeding $3.5 billion in 2025. The SelectUSA Investment Summit offers Algerian companies a platform to explore strategic business and investment opportunities, deepen their understanding of the US investment climate, and exchange best practices with global industry leaders, facilitating knowledge transfer for the modernization of Algerian industry. This engagement represents a further step in integrating Algerian business
Algerian Prime Minister Sifi Ghrieb has signed a new executive decree, n° 26-158 of April 14, 2026, to modernize urban planning and accelerate the processing of investment files. This decree amends and complements the 2015 decree, aiming to eliminate bureaucracy and introduce transparency through digitalization. Key changes include strict deadlines for administrative processing: a minimum of 10 days for file review meetings, a maximum of 10 days for conformity studies, 15 days to respond to rejection decisions, and a fixed 3-month period for conformity regularization. This initiative aligns with the new investment law, centralizing processes at the Algerian Investment Promotion Agency's AAPI One-Stop Shop. The decree also introduces a "prior agreement" mechanism, allowing investors to submit architectural projects for early review by urban planning services to correct anomalies before incurring detailed study costs. The process is moving towards 100% online, with investors able to submit applications digitally or in paper format, receiving an acknowledgment of receipt for real-time tracking. Representatives from Domains, Environment, and Civil Protection are now centralized at the One-Stop Shop. Furthermore, the reform streamlines post-completion conformity control, granting investors the right to appeal to the specialized national commission in case of disputes or refusal of a conformity certificate. This new regulatory framework reflects the state's commitment to structural
Cooperation between Algiers and Moscow is expanding following the "Moscow Days" event and the Algerian-Russian Business Forum. Sergey Cheremin, Moscow government minister and head of the international relations department, confirmed Moscow's readiness to support the development ambitions of the Algiers wilaya, particularly its modernization plan for 2035. During discussions with the wali of Algiers, Mohamed Abdennour Rabehi, Cheremin expressed Moscow's desire to share its expertise as a dynamic metropolis. The partnership will focus on modernizing transport infrastructure, with Moscow leveraging its global leadership in metro network expansion to improve urban mobility in Algiers. Cooperation will also cover digital transition, sharing expertise on dematerializing public services and integrating artificial intelligence into vital sectors such as housing, health, education, and social affairs. Cheremin described Algeria as an "essential gateway to the African continent," highlighting the growing attractiveness of the Algerian market, driven by national projects launched by the President. Russian economic operators are particularly interested in strategic sectors in Algeria, including the extension and modernization of the railway network and the upgrading of maritime infrastructure through port expansion. This partnership also extends to urban planning, with projects for developing new cities and expanding existing urban centers, laying the groundwork for lasting and mutually