Algeria’s state oil giant Sonatrach and Egypt’s Petroleum Projects and Technical Consulting Company (PETROJET) are advancing discussions on establishing a joint manufacturing complex in Algeria, following high-level meetings between the two energy sector heavyweights. The potential partnership represents a significant expansion of bilateral cooperation in strategic petroleum projects between the North African neighbors.
PETROJET hosted a delegation from Sonatrach led by Chairman and Chief Executive Officer Nour Eddine Daoudi as part of the Algerian group’s participation in the Joint Egyptian Algerian Business Council meeting. During the visit, the Algerian delegation toured PETROJET’s central manufacturing complex for local components of petroleum projects in Katameya and the company’s headquarters in New Cairo, gaining firsthand insight into the Egyptian firm’s enhanced capabilities.
Walid Lotfy, Chairman of PETROJET, expressed pride in the partnership with Sonatrach and reaffirmed commitment to deepening cooperation to implement strategic projects in Algeria, according to a statement from Egypt’s Ministry of Petroleum and Mineral Resources. Daoudi praised the significant development in PETROJET’s capabilities, noting not only advancements in manufacturing but also the diversity and evolution of the company’s activities and its strong performance in recent years. He described these developments as a solid foundation for the manufacturing complex cooperation currently under study.
The proposed partnership extends a Memorandum of Understanding signed in 2022 between the Egyptian Ministry of Petroleum and Mineral Resources and the Algerian Ministry of Energy. Following that agreement, Sonatrach and PETROJET signed their own MoU, establishing a new phase of strategic partnerships between the two entities that has already yielded substantial results.
PETROJET recently received a preliminary award to serve as general contractor for Phase 2 development of the Hassi Bir Rekaiz oil field in Algeria, a major project valued at $1.087 billion. This contract demonstrates the growing confidence Algerian authorities have in PETROJET’s technical and project management capabilities and sets the stage for even deeper integration through a permanent manufacturing presence in the country.
The potential joint manufacturing complex would represent a significant milestone in Egyptian-Algerian energy cooperation, creating local production capacity for petroleum project components while leveraging PETROJET’s established expertise and Sonatrach’s intimate knowledge of Algeria’s energy sector needs. Such a facility could reduce dependence on imported components, create local employment, and enhance the efficiency of petroleum projects across Algeria.
Source: egyptoil-gas.com