China’s state owned energy firm, Sinopec, has signed a new contract with Algeria’s national oil company, Sonatrach, to explore and develop a vast gas block in the North African country.
The company made this disclosure in a statement this week, adding that the agreement positions Sinopec to tap into both conventional and shale gas resources in one of Algeria’s most promising basins.
The deal covers the Guern El Guessa II (GEG) block, located in the Gourara Timimoun Basin, which spans approximately 36,000 square kilometers.
The block is believed to hold proven conventional gas reserves, along with the potential for significant shale gas deposits.
Multi stage evaluation preceded deal
The contract was signed between Sinopec International Petroleum Exploration & Production Corporation (SIPC), a subsidiary of Sinopec Group, and Sonatrach earlier this week.
The award followed an international tender concluded last month, during which Sonatrach selected Sinopec to explore and develop the block.
In a June report published by Sinopec’s internal newspaper, the company stated it had conducted several rounds of evaluation before submitting its bid, relying on its in house expertise in unconventional energy resources.
“Sinopec fully leveraged its integrated capabilities in developing unconventional oil and gas resources during the technical evaluation of the GEG block,” the publication stated.
Sinopec, also known as China Petrochemical Corporation, is one of China’s earliest developers of shale gas and operates the Fuling shale gas field, which is currently the country’s largest single shale gas project.
The GEG contract expands the company’s international portfolio and builds on a previous $850 million deal signed in February, under which Sinopec and Sonatrach agreed to jointly develop the Hassi Berkane North field in Algeria.
Algeria, a key energy supplier to Europe, is ramping up efforts to attract foreign investors to its natural gas sector.
The country has some of Africa’s largest gas reserves and is actively exploring both conventional and unconventional sources.
Chinese growing influence in Algeria
In a parallel development, independent Chinese firm Zhongman Petroleum and Natural Gas Company (ZPEC) confirmed this week it had also signed a contract to explore and develop the Zerafa II gas block, following a separate tender concluded last month.
The company disclosed the agreement via its official WeChat platform.
Algeria’s expanding partnerships with Chinese energy companies reflect a broader strategy to diversify its exploration partners while strengthening energy ties with Asia.
It also highlights China’s growing footprint in Africa’s upstream energy sector, especially in regions with untapped unconventional resources.
