Algeria grants BP new exploration licence in Eastern Basin

The Algerian government decided to award British energy major BP (LSE:BP) a new licence to explore for oil and gas in the country’s Eastern Basin, as part of efforts to boost exploration activity in underexplored regions, according to a statement by the National Agency for the Valorisation of Hydrocarbon Resources (ALNAFT), cited by Al Arabiya Business on April 15. 

The licence allows the company to carry out preliminary exploration activities, including surveys and studies to assess resource potential, but excludes drilling or production, which require separate approvals.

ALNAFT said the move forms part of its strategy to enhance the attractiveness of Algeria’s mining domain and create new opportunities for international energy companies. The agency noted that Algeria’s hydrocarbon domain spans more than 1.7mn square kilometres, offering vast areas with significant untapped potential.

The initiative aims to deploy advanced exploration technologies to improve geological understanding of the eastern basin and evaluate its energy prospects.

ALNAFT added that BP’s return to Algeria sends a strong signal of renewed confidence among international companies in the country’s hydrocarbon potential and its partnership framework. The company divested its previous Algerian assets, InAmenas and InSalah, in 2023 as part of a strategic divestment to Italian energy firm Eni (BIT:ENI), aimed at high-grading its global portfolio and focusing capital on higher-return or lower-carbon assets.