On June 16, 2026, the bidding for Phase 2A of the Hassibirrika'iz oil field in Algeria is about to close. This $1.1 billion oilfield development project is attracting the attention of the international engineering contracting market. Two months ago, the contract for the second phase of the project had just been acquired by a consortium of Egyptian and Italian companies. This oil field deep in the Sahara Desert is becoming a frontier for Algeria to increase its oil and gas production capacity.

The second phase of the oilfield has signed a large order worth 1.1 billion US dollars

The GHBR Group, responsible for operating the Hassibirrikaz oil field, is a joint venture between Sonata, the Algerian national oil and gas company, and PTTEP, the Thai national exploration and production company. In May 2026, GHBR signed a contract worth $1.1 billion for the second phase of the oilfield development project.

The contract was awarded to a consortium consisting of an Egyptian oil project and technical consulting company and an Italian engineering contracting company Arkad. The Egyptian company is responsible for a portion worth approximately $600 million, while the Italian company is responsible for a portion worth approximately $500 million. The contract adopts an engineering, procurement, construction, and commissioning mode, mainly constructing a central processing facility capable of processing crude oil and associated gas, as well as external pipelines and related public facilities and infrastructure.

Phase 2A bidding focuses on engineering supervision services

Less than a month after the signing of the second phase contract, GHBR issued a new tender for the 2A phase of the oilfield development project. According to the documents released by Sonata, the scope of this contract mainly involves the provision of engineering and supervisory services. The deadline for bidding is June 16th, 2026.

This tender indicates that Algeria is advancing the overall development of the Hassibirrikazi oil field in a phased and fast-paced manner, with engineering services and on-site supervision forces following up simultaneously.

Daily processing of 32000 barrels for future expansion

According to the plan disclosed in the second phase contract, the central processing facility will have the capacity to process 32000 barrels of crude oil per day and be designed to support future expansion. The relevant infrastructure will include a massive pipeline system approximately 217 kilometers long, as well as a supporting road network. Keywords: Middle East News Network, Oilfield

This project is one of the important measures taken by Algeria to enhance its oil and gas production capacity and consolidate its position in energy exports. With the advancement of the 2A phase bidding, more international engineering companies are expected to participate in the energy development process deep in the Sahara Desert.Editor/Gao Xue