Workers, including the project manager, have been deployed in Algeria for phase two of the to develop Algeria’s Hassi Bir Rekaiz (HBR) oil and gas field, according to industry sources.

The workers in Algiers are preparing to mobilise to the project site, which is in eastern Algeria, around 150 kilometres northeast of the Hassi Messaoud oil field.

The rest of the project team is expected to be deployed in the near future and the preparation of site facilities is likely to start soon, sources said.

In May, Egypt’s Petrojet and the Italian engineering and contracting company Arkad signed the contract for the development project, which is valued at about $1.1bn.

Of this, Petrojet’s portion of the project is estimated to be worth around $600m and Arkad’s portion is estimated to be worth $500m.

The client is Groupement HBR, which is a joint venture of Algeria’s national oil and gas company Sonatrach and Thailand’s PTTEP.

The contract uses the engineering, procurement, construction and commissioning model.

In its statement, Arkad said: “This award celebrates our deep-rooted presence and continued growth in a country which belongs to our legacy.

“Over the past five decades, our performance in more than 30 projects in Algeria has strengthened our expertise, expanded our technical capabilities and reinforced our reputation as a reliable [engineering, procurement and construction] partner.”

The scope of the project is focused on the construction of a central processing facility (CPF) capable of processing crude oil and associated gas.

It also includes developing off-plot pipelines, as well as related utilities and infrastructure.

The CPF will have the capacity to process 32,000 barrels a day (b/d) and will be designed in a way that will support future expansions.

The related infrastructure will include an extensive pipeline network spanning approximately 217 kilometres, as well as a network of roads.

In its statement, Arkad said that Petrojet is “a trusted partner capable of bringing extensive experience combined with differentiated local execution capabilities”.

The contract signing took place during the official visit of Egypt’s Petroleum & Mineral Resources Minister, Karim Badawi, to Algeria.

Badawi witnessed the signing ceremony along with Algeria’s Hydrocarbons & Mines Minister, Mohamed Arkab.

Petrojet is increasing its international presence, with more than half of its recent contracts secured outside Egypt.

These include major projects in Algeria, Saudi Arabia, Iraq, Libya, Jordan, the UAE and Kuwait.