Algiers – Algeria launched a new call for international bids for hydrocarbon concessions on Sunday, with global energy markets under extreme stress from the war in the Middle East.
Oil and gas prices have soared since the US-Israeli war on Iran broke out, driven up by the closure of the Strait of Hormuz — a major conduit for petroleum shipments — as well as damage inflicted on Gulf energy infrastructure.
The “Algeria Bid 2026” call for tenders, the second of its kind since 2024 aimed at attracting foreign investment, seeks “to reinforce the attractiveness of the sector, develop national hydrocarbon resources and consolidate Algeria’s place as a reliable destination for energy investment”, hydrocarbons minister Mohamed Arkab said at a ceremony in Algiers.
Algeria has an ambitious plan to invest $50-60 billion to boost exploration and modernise energy infrastructure, aiming to double its gas production to 200 billion cubic metres by 2030.
The country is already Africa’s largest gas exporter, and became a major provider of gas to the EU following a halt to imports from Russia after its 2022 invasion of Ukraine.
The seven areas covered by the new call for bids include strategic basins in the country’s south and southeast.
Six blocks are being offered up as production-sharing agreements with the state firm Sonatrach, while the seventh is a participation contract, in which Sonatrach will hold at least 51 percent.
Bids must be submitted by November 26, with the results expected to be announced at the end of January.
Algeria derives more than 90 percent of its foreign currency earnings from hydrocarbons.
It is currently in discussion with several foreign companies, including Chevron and ExxonMobil, on potentially developing offshore fields and exploiting substantial shale gas deposits in its southern desert.
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Source: AFP
