Algeria has launched a new licensing round aimed at attracting international investors into its gas sector, offering seven exploration blocks as it seeks to boost upstream activity and secure new hydrocarbon resources.
The announcement was made under the supervision of Minister of State for Energy, Mines and Renewable Energies Mohamed Arkab during a public event reported by Algeria Press Service on Sunday.
Authorities said the process is open to global energy companies, with bids expected to be submitted by November 26, 2026, while final exploration agreements are scheduled for signing by January 31, 2027.
The 2026 round builds on the earlier “Algeria Bid Round 2024,” which was the country’s first major licensing exercise in about ten years. That round led to the award of exploration rights across five blocks to international firms and signalled a gradual reopening of Algeria’s upstream oil and gas sector.
Before these recent rounds, licensing activity had slowed significantly, limiting new exploration and placing greater pressure on existing fields.
Hydrocarbons remain central to state revenue
Algeria continues to depend heavily on oil and gas for public finances and export earnings. According to the International Monetary Fund, hydrocarbons account for about 92 per cent of export revenue and around 43 per cent of government income.
This reliance means fluctuations in global energy prices directly affect the country’s fiscal position and foreign exchange reserves.
Data from Algeria’s central bank shows hydrocarbon export earnings fell to $45.23 billion in 2024, compared with $50.49 billion in 2023, reflecting changing global market conditions.
The drop has added pressure on authorities to increase exploration activity and secure new reserves to maintain production levels.
Sonatrach increases investment in exploration
Moreover, its state oil firm company Sonatrach has outlined a major investment plan focused heavily on upstream activity.
Its chief executive Noureddine Daoudi said in February 2026 that about 75 per cent of a planned $60 billion investment programme for 2026–2030 will be directed toward exploration and production.
The company also reported 17 new hydrocarbon discoveries in 2025, mainly in mature basins, as part of efforts to replace declining output and stabilise reserves.
Sonatrach has set a target of reaching 200 billion cubic metres of gas production annually within five years, up from about 137 billion cubic metres in 2023, according to OPEC data.
Stronger position in global gas supply
Algeria has also strengthened its role in international energy markets, particularly in Europe. In 2025, it became Spain’s leading supplier of natural gas, ahead of the United States and Russia, according to Spanish gas grid operator Enagás.
This position has reinforced Algeria’s importance as a stable gas supplier at a time of shifting global energy flows.
The new licensing round is expected to attract global exploration companies looking for opportunities in North Africa’s established hydrocarbon basins.
For Algeria, the process is part of a broader strategy to secure new reserves, sustain export earnings, and maintain stability in a sector that remains central to its economy and public finances.
