Algeria has finally announced the long-awaited results of its ambitious 2024 oil and gas licensing round.
The results of the 2024 bid round were expected by April but were postponed by Algeria’s National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) until July. They have now been announced days earlier.
The Algerian government launched the bid last year—the first in a decade—to attract meaningful investment and revitalize its upstream oil and gas activity.
It is the first in a series of five annual bids planned to ramp up gas production to 200 billion cubic meters (bcm) per year over the next five years, up from the current 137 bcm.
Algeria is known to have significant crude oil and natural gas reserves.
It holds approximately 12.2 billion barrels of proven crude oil reserves (third in Africa), and an estimated 159 trillion cubic feet (Tcf), next to Nigeria’s 210 Tcf.
The country also hosts substantial unconventional reserves of shale gas and tight gas.
A total of six onshore blocks were offered in the just-concluded 2024 round, including:
- Ahara
- Zerafa II
- Reggane II
- Toual II
- Guern El Guessa II
- Grand M’Zaid
These blocks span an area of 152,000 square kilometers—larger than the whole of England.
We look at the winners of the bid and which of these blocks they have been licensed to explore and develop.
Sinopec (China)
The Chinese oil multinational was granted the sole license to explore the Guern El Guessa (also called Kern El Kassa) II block.
The block spans 36,374 km² in the south-western Gourara region (Timimoun) and will be explored by Sinopec, one of Algeria’s largest international contractors for geophysical services.
It signed an exploration deal worth $850 million with Algeria’s state oil and gas firm Sonatrach earlier this year and has since begun negotiating with key international companies for a role in Algeria’s upstream oil sector.
ZPEC (China)
China’s Zhongman Petroleum Exploration Company (ZPEC) was granted a permit to explore the Zerafa II gas block, which was also eyed by established Western players like TotalEnergies, Eni, and Equinor.
The Zerafa II block is in central Algeria and covers over 38,600 square kilometers, reaching Algeria’s main gas-bearing Gourara-Timimoun basin.
The win adds another feather to the cap of the Chinese company, whose interest across the Middle East and North Africa (MENA) region has been growing in recent years.
TotalEnergies (France)
The French giant was granted a license to develop the Ahara area, which sits at the “intersection of the prolific Berkine and Illizi Basins” and spans 14,900 square kilometers onshore Algeria.
The field was jointly awarded to TotalEnergies and QatarEnergy, with each holding 24.5%.
However, TotalEnergies will operate the licensed area during the exploration and appraisal phases.
The remaining majority stake of 51% will be held by Sonatrach, Algeria’s national oil and gas company, in accordance with the country’s upstream policy.
Eni (Italy)
The Italian energy company was awarded a license to jointly explore and develop the Reggane II block alongside PTTEP, a Thai national petroleum company.
The Reggane II block spans 48,800 square kilometers across known gas fields and uncharted geological zones, offering a rare blend of low-risk production and high-potential exploration.
Eni has a solid foothold in Algeria.
In 2023, Eni successfully acquired BP’s business in Algeria, including the two gas-producing concessions “In Amenas” and “In Salah” (with 45.89% and 33.15% working interest, respectively).
The company plans to invest up to $9 billion each in Algeria, Libya, and Egypt over the next four years to boost production.
QatarEnergy (Qatar)
The state-owned gas company of Qatar also obtained rights to explore oil and gas onshore in the 2024 Algeria Bid Round.
The firm will be jointly exploring the Ahara blocks, for which it was jointly awarded a license alongside TotalEnergies.
Unlike TotalEnergies, the Ahara license marks QatarEnergy’s entry into Algeria’s upstream sector.
Ahara is located between the well-known Berkine and Illizi Basins in eastern Algeria and spans roughly 14,900 square kilometers.
Other winners
Outside these popular energy companies, there were other new entrants like Zangas, PTTEP, and Filada, which were also jointly awarded licenses to develop key fields.
Zangas (Austrian) along with Filada (Swiss) secured the license for oil exploration and production in the Toual II area of the Berkine Basin in Algeria.
Also, PTTEP will be jointly exploring the Reggane II block alongside Eni.
The Thai company acquired 34% of the share capital in E\&E Algeria Touat B.V. last year, indirectly gaining a 22.1% investment in the Touat onshore project already operated by Eni.
Although the exercise was not big on oil, it successfully attracted key investors to some of the country’s potential gas fields.
Only five out of the six onshore blocks offered were awarded, leaving the Grand M’Zaid block behind.
However, European and Asian companies dominated the list of acquirers, with a modest entry of new prominent players.
What you should know
Algeria, one of Africa’s top gas producers, is accelerating efforts to attract foreign investment in exploration and development.
The country is facing declining domestic production and growing global demand for natural gas.
Algeria recorded the second-largest drop in LNG exports in 2024, largely attributed to extended maintenance at key gas-producing fields across the country.
As a result, the Algerian government launched a five-year licensing round in 2024 to boost upstream activity, targeting both oil and gas development.
The 2024 round was the country’s first call for tender conducted under the hydrocarbon law (No.19-13) sanctioned in 2019.
The 2025 bid round is scheduled for this October.
