Algeria has opened a new international bidding round for oil and gas exploration, aiming to attract foreign investment and expand production as global energy markets face renewed instability. The “Algeria Bid 2026” tender offers seven hydrocarbon blocks, mainly located in the country’s southern and southeastern basins regions known for significant untapped reserves. Six of the blocks will be developed under production-sharing agreements with state energy company Sonatrach, while the seventh will operate under a participation model requiring Sonatrach to retain at least a 51% stake. Bids are expected by November 26, with contract awards anticipated by late January. Officials say the initiative is designed to strengthen Algeria’s position as a reliable energy supplier at a time when global supply chains are under pressure.
Energy markets have been volatile following escalating tensions in the Middle East, including disruptions linked to the Strait of Hormuz, a critical passage for global oil shipments. Damage to infrastructure and restricted flows in the Gulf region have driven up oil and gas prices, increasing demand for alternative suppliers. Algeria’s Minister of Energy, Mohamed Arkab, said the country plans to invest between $50 billion and $60 billion to nearly double its natural gas production to 200 billion cubic metres annually by 2030.
Already Africa’s largest gas exporter, Algeria has strengthened its role as a key supplier to the European Union, particularly after the bloc reduced reliance on Russian energy following the 2022 Ukraine conflict. Hydrocarbons account for more than 90% of Algeria’s export earnings, making the sector central to its economy. The government is also in discussions with global energy firms such as Chevron and ExxonMobil to explore offshore and shale gas opportunities. The new bidding round signals Algeria’s intent to capitalize on shifting global energy dynamics while securing long-term investment in its oil and gas industry.
