ALGIERS, May 5 (Xinhua) -- Algeria's state-owned energy giant Sonatrach here on Tuesday signed a memorandum of understanding (MoU) with the Egyptian General Petroleum Corporation, paving the way for future contracts to supply crude oil and petroleum products from Algeria to Egypt, Algeria's official APS news agency reported.

Meanwhile, a contract valued at over 1 billion U.S. dollars was also signed between Sonatrach, Thailand's PTTEP, and a consortium comprising Egypt's Petrojet and Italy's Arkad, with an aim to develop the second phase of the Hassi Bir Rekaiz oil field in the Berkine Basin, eastern Algeria. The consortium won the contract in October 2025.

Speaking at the signing ceremony, Algerian Minister of Hydrocarbons and Mines Mohamed Arkab said the two agreements reflect the strong ties between Algeria and Egypt and their shared commitment to enhancing Arab and African cooperation, as well as promoting strategic partnerships across the continent.

For his part, Egypt's Minister of Petroleum and Mineral Resources Karim Badawi underscored the importance of bilateral cooperation in opening new prospects for the energy sector. He welcomed the MoU, noting it would facilitate the entry of Algerian petroleum products into the Egyptian market. ■