Algeria and Egypt have strengthened bilateral energy relations following the signing of new agreements aimed at expanding cooperation in the oil sector.
Algeria’s state owned energy company Sonatrach signed a memorandum of understanding with the Egyptian General Petroleum Corporation to facilitate future contracts for the supply of crude oil and petroleum products from Algeria to Egypt.
The agreement is expected to support greater integration between the two countries’ energy markets and open up new trade opportunities in petroleum products.
In a related development a contract worth more than one billion dollars was also concluded between Sonatrach PTTEP and a consortium made up of Petrojet and Arkad.
The contract will advance the second phase of development at the Hassi Bir Rekaiz oil field located in the Berkine Basin in eastern Algeria with the consortium having secured the project in October 2025.
Speaking at the signing ceremony Algeria’s Minister of Hydrocarbons and Mines Mohamed Arkab described the agreements as a reflection of the strong relationship between the two countries and their shared commitment to deepening cooperation across Africa and the Arab world.
Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi also highlighted the significance of the partnership noting that it will create new opportunities for growth in the energy sector and enable Algerian petroleum products to access the Egyptian market.