Egyptian oil services firm Petrojet plans to build manufacturing complex in Algeria

Egypt’s oil services firm Petrojet and Algeria’s state-owned energy major Sonatrach are studying the establishment of a joint manufacturing complex in Algeria to produce equipment for oil and gas field operations, Al Arabiya Business reported on November 30. 

The plant will have a potential for future exports to West African markets. The initiative aims to strengthen industrial integration between the two state-backed energy companies and support regional supply chains.

Egypt’s Ministry of Petroleum and Mineral Resources said in a statement that Petrojet received a high-level delegation from Sonatrach, headed by CEO and General Manager Noureddine Daoudi. During the visit, Petrojet Chairman Waleed Lotfy expressed the company’s interest to expand cooperation with Sonatrach on strategic projects across Algeria.

The Algerian delegation toured Petrojet’s central fabrication complex in Katameya, as well as the company’s headquarters in New Cairo. The visit coincided with the meetings of the Egyptian-Algerian High Joint Committee and the Joint Business Council, on the back of the growing economic ties between the two countries.

The prospective manufacturing project builds on a 2022 Memorandum of Understanding between Egypt’s Ministry of Petroleum and Algeria’s Ministry of Energy and Mines, followed by a separate MoU between Sonatrach and Petrojet. Officials say these agreements lay the groundwork for a new phase of strategic industrial partnerships.

Petrojet has also recently secured an initial award worth $1.087bn to act as the main contractor for the second-phase development of the Hassi Bir Rkaiz field in Algeria, after successfully passing a competitive qualification process involving several major international firms.