The deal will kick off on Feb. 1 with the world's largest oil trader loading a 1 million barrel cargo, one of the sources said.

Algeria is aiming to cut its fuel import bill through the contract, which will last until the year end. Vitol was among nine contenders vying for deal, including oil majors and its major trading house competitors.

(Reporting by Julia Payne and Ahmad Ghaddar in London, Lamine Chikhi in Algiers; editing by Alexander Smith)