On Sunday, Algeria issued a new international tender inviting bids for hydrocarbon exploration and production rights, as it seeks to attract fresh investment into its energy sector amid turbulence in global markets linked to the ongoing conflict in the Middle East.
Crude oil and natural gas prices have surged following the outbreak of hostilities between the United States and Israel and Iran, with disruptions to the Strait of Hormuz and damage to key energy infrastructure in the Gulf region tightening global supply flows.
Seven exploration blocks offered
The new bidding round, branded “Algeria Bid 2026,” includes seven exploration zones located mainly in the southern and southeastern parts of the country, including several strategically important basins.
Six of the blocks will be developed under production-sharing agreements in partnership with the state energy company Sonatrach, while the remaining block will operate under a participation model requiring the firm to retain at least a 51% stake.
Companies interested in the tender must submit their proposals by November 26, with final awards expected to be announced at the end of January.
Production expansion goals
Algeria’s Minister of Hydrocarbons, Mohamed Arkab, said the initiative is designed to strengthen the sector’s competitiveness and reinforce the country’s position as a stable and attractive destination for energy investment.
The government is targeting an investment programme of between $50 billion and $60 billion to double natural gas output to 200 billion cubic metres by 2030.
Already the largest gas exporter in Africa, Algeria gained further importance as a supplier to the European Union after Russian gas imports were reduced following the 2022 invasion of Ukraine.
Hydrocarbons account for more than 90% of Algeria’s foreign exchange earnings, and the country is currently in discussions with major international energy firms, including Chevron and ExxonMobil, regarding potential development of offshore reserves and shale gas resources.