The national oil company of Algeria, Sonatrach, has signed a production sharing contract (PSC) with TotalEnergies and QatarEnergy for the Ahara perimeter in southeastern Algeria.
The signing ceremony took place at Sonatrach headquarters in Algiers, according to a press statement by TotalEnergies and seen by Energy in Africa.
“This partnership marks a significant step forward in unlocking Algeria’s natural resource potential and reflects our shared commitment to responsible energy development,” the statement reads.
According to the terms of the agreement, TotalEnergies (24.5%) will serve as the operator during the exploration and appraisal phases, while Sonatrach and QatarEnergy will hold a 51% and 24.5% stake respectively.
The Ahara perimeter covers an onshore area of approximately 14,900 km² and is located at the junction of the Berkine and Illizi basins; two of Algeria’s most productive hydrocarbon regions.
The project is developed within Algeria’s broader strategy to attract foreign investment and increase energy production under a reformed legal and fiscal framework introduced in 2019.
Unlike TotalEnergies which already has a solid stake, the Ahara license marks the entry of QatarEnergy into Algeria’s upstream sector.
In fact, TotalEnergies contributed 154 million cubic feet of gas and 21,000 barrels of liquids daily to Algeria’s production last year, according to data on its website.
What you should know
The Ahara contract follows the conclusion of the Algeria Bid Round 2024 in June this year.
This was the first international tender launched by the government since the new Hydrocarbons Law No. 19-13 was passed.
French energy giant TotalEnergies and QatarEnergy secured the Ahara license for the Ahara onshore field during the round.
“TotalEnergies is delighted that its joint bid with QatarEnergy has led to the award of the Ahara license, allowing us to write a new chapter in our long-lasting partnership with SONATRACH in Exploration in Algeria”, said TotalEnergies’ CEO Patrick Pouyanné at the time.
The Algerian National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) launched an ambitious multi-billion-dollar five-year licensing round last year, targeting new oil and gas development.
“We need more exploration. Today, we have more than 240 discoveries waiting to be developed. We need to make more discoveries to increase our reserves,” Mourad Beldjehem, President of ALNAFT, said during the launch.
