Algeria launches international bid for oil and gas concessions

Sunday 19 April 2026 - 16:30

Algeria has officially launched a new international bidding round for oil and gas exploration and production licenses, seeking to attract foreign investors at a time of heightened volatility in global energy markets.

The initiative, titled “Algeria Bid 2026,” marks the second such call since 2024 and includes seven exploration areas focused on conventional hydrocarbon resources. According to the national agency responsible for managing hydrocarbon resources, the selected blocks are located in strategic basins across the southern and southeastern regions of the country.

This move comes amid rising oil and gas prices linked to escalating tensions in the Middle East. Recent disruptions affecting infrastructure in several Gulf countries, along with constraints in a key maritime passage used for global energy shipments, have intensified concerns about supply stability worldwide.

As a member of the Organization of the Petroleum Exporting Countries (OPEC) and Africa’s leading gas exporter, Algeria is increasingly viewed as a reliable alternative supplier. Authorities aim to capitalize on this position by strengthening the country’s attractiveness to international energy companies.

Bids for the new concessions are expected to be submitted by late November 2026, with final allocations scheduled for early 2027. The government has emphasized that the program is part of a broader strategy to enhance the value of national resources, modernize infrastructure, and reinforce Algeria’s role in global energy markets.

In parallel, Algeria is pursuing an ambitious investment plan estimated between $50 billion and $60 billion. The objective is to boost exploration activities and significantly increase natural gas production, with a target of reaching 200 billion cubic meters annually by 2030.

The country has gained prominence as a key gas supplier to Europe, especially after the reduction of Russian gas imports in recent years. This evolving geopolitical landscape has further elevated Algeria’s strategic importance.

The bidding framework includes six production-sharing contracts in partnership with the national company Sonatrach, while a seventh block will be offered under a participation model in which Sonatrach retains a majority stake.

Previous bidding rounds have already attracted international interest, with several permits awarded to consortia involving foreign firms. Algeria is also exploring new opportunities, including offshore developments and unconventional gas resources, in collaboration with major global energy companies.

With vast hydrocarbon reserves and a strong export capacity, Algeria continues to rely heavily on the sector, which accounts for the majority of its foreign currency revenues.