Algeria offers onshore oil and gas opportunities to investors at AEW 2026

Algeria’s state-owned National Agency for the Valorisation of Hydrocarbon Resources (ALNAFT) is seeking international investment for seven onshore oil and gas blocks under its 2026 licensing round. The agency presented the opportunities at African Energy Week (AEW 2026) in Cape Town, the African Energy Chamber (AEC) said in a media statement on October 13.

The blocks cover established hydrocarbon basins and offer access to existing production and export infrastructure. According to the AEC, the initiative is part of ALNAFT’s broader investment strategy which aims to attract investors to explore underdeveloped acreage, increase production and expand Algeria’s supplies to international markets.

Idri Mohand Laid, ALNAFT’s Director of Hydrocarbon Mining Promotion and Development Division, said the country retained significant exploration potential.

“Algeria’s hydrocarbon domain extends over 1.7 million square kilometres, of which over 92.5% is onshore. Only 44% of this domain is under coverage, whether through prospection, research or exploitation,” Laid said.

The licensing round, launched on April 19, 2026, covers about 49,000 square kilometres across the Illizi, Berkine, Oued Mya, Amguid and Benoud basins. More than 50 companies have registered interest, according to information presented at the event.

ALNAFT initially set November 26, 2026, as the deadline for the submission of bids. The announcement of results was scheduled before the signing of hydrocarbon contracts with Algeria’s national oil company Sonatrach, planned for January 31, 2027. According to the AEC’s statement, these dates have now been moved, with technical and commercial bids due by January 25, 2027 and contracts with Sonatrach to be signed by March 31, 2027.

Laid said Algeria’s infrastructure and location between Africa and Europe supported its investment case. The country produces about 120bn cubic metres (bcm) of gas annually, including volumes used for gas cycling. Its domestic pipeline network extends for 21,000 km and includes 85 pumping and compression stations. Two export pipelines connect Algeria to European markets.

“Investing in Algeria means benefitting from a strong logistic and investment environment. We enjoy a unique geographic position on the crossroads between Africa and Europe,” Laid said.

Investors can participate through competitive bidding or direct negotiations under Algeria’s Hydrocarbons Law No. 19-13, with participation arrangements preserving Sonatrach’s majority interest where applicable. Applicants must prequalify through ALNAFT’s Bid Round Connect platform and pay a non-refundable $30,000 fee for each block.

ALNAFT also uses study agreements for prospective investors to assess opportunities before committing capital. According to Yasmine Deramchi, ALNAFT’s Hydrocarbon Upstream Promotion Director, these agreements offer another route for companies to build a stronger understanding of Algeria’s upstream sector, evaluate hydrocarbon potential and test project economics.

ALNAFT has also introduced virtual data rooms for its 2026 bid round, where qualified bidders can access technical information. According to the AEC’s statement, data room access and clarification periods run until November 30, 2026, ahead of the January 2027 bid submission deadline.