Algeria and Egypt have agreed on new energy partnerships aimed at boosting crude oil supply and expanding joint oilfield development projects.

The deal includes a memorandum of understanding between Algeria’s state energy firm Sonatrach and the Egyptian General Petroleum Corporation. The agreement will allow both countries to work toward future contracts for the delivery of crude oil and petroleum products from Algeria to Egypt, helping strengthen energy trade between the two nations.

In another agreement, a consortium involving Sonatrach, Thailand’s PTTEP, Egypt’s Petrojet, and Italy’s Arkad signed a contract worth over $1 billion. The project focuses on developing the second phase of the Hassi Bir Rekaiz oil field in Algeria’s Berkine Basin.

Officials from both countries described the agreements as a step forward in deepening cooperation in the oil and gas sector and expanding strategic energy partnerships across Africa and the Arab region.