Algeria Brings Latest Upstream Bid Round to AEW 2026 as Investor Interest Builds

Algeria will showcase its 2026 Bid Round at the African Energy Week (AEW) 2026 Conference and Exhibition, bringing seven onshore exploration opportunities before global investors as the country advances a new cycle of upstream licensing and investment.

Taking place in Cape Town from October 12–16, AEW 2026 will feature a dedicated session examining the bid round, Algeria's exploration potential and the country's evolving upstream investment framework. The session comes approximately six weeks before bids are expected to close, providing a timely platform for National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) and industry stakeholders to engage prospective investors as the licensing process enters its final phase.

Launched by the ALNAFT in April, the round has attracted early interest from international energy companies, with 53 companies registered and interest reported across all seven blocks. Virtual Data Rooms opened in June – marking the first use of the digital platform in an Algerian licensing round – providing qualified investors with remote access to technical data ahead of the November 26 bid deadline. Hydrocarbon contracts with national oil company Sonatrach are scheduled to be signed by January 31, 2027.

The round comprises seven onshore blocks – Illizi Centre 1, El M'Zaid North, El Borma II, East Bordj Omar Driss 1, El Hadjira III, El Benoud East and Touggourt South – spanning established hydrocarbon regions including the Illizi, Berkine and Oued Mya basins. The contractual framework provides for an exploration period of up to seven years, extendable by two years, followed by a 30-year exploitation period with the possibility of a ten-year extension.

The 2026 licensing process introduces a more market-led approach to acreage selection. Ahead of the formal round, ALNAFT launched a Nomination Process allowing international companies to assess and express interest in a portfolio of 24 onshore blocks. The portfolio included 13 development and exploration projects and 11 exploration opportunities, several containing discoveries requiring further appraisal. Feedback received during the process was used to inform the structure of the subsequent licensing round.

The latest tender builds on Algeria's 2024 Bid Round, which offered six onshore blocks and resulted in five hydrocarbon contracts awarded in 2025. The licensing strategy coincides with the country’s upstream reform push, centered around the 2019 Hydrocarbons Law. The country is now targeting sustained gas output above 10 billion cubic feet a day, positioning itself as a stable long-term supplier to European markets.

International companies are already expanding exploration positions under this framework. TotalEnergies and QatarEnergy were awarded the Ahara exploration and exploitation contract covering approximately 14,900 km² at the junction of the Berkine and Illizi basins following the previous licensing round. Algeria is also pursuing direct partnerships with international operators across both conventional and unconventional resources.

Shale gas exploration is also drawing renewed international attention. USGS estimates put southwestern Algeria's Ahnet and Grand Erg basins at 80.1 trillion cubic feet of technically recoverable unconventional gas. Sonatrach is already negotiating directly with Chevron and ExxonMobil for opportunities across Ahnet and Berkine, while Sinopec has moved into Illizi and Ghadames under risk-service contracts.

The licensing push forms part of a wider investment program targeting $60 billion across Algeria's energy sector between 2025 and 2029, with the government indicating that approximately 80% will be directed toward upstream exploration and production. The program seeks to sustain hydrocarbon production, develop new resources and reinforce Algeria's position as a major supplier to domestic and international energy markets.

“Algeria has a unique combination of proven hydrocarbon resources, established infrastructure and exploration potential. As the country opens new acreage and looks to attract more international investment, the dedicated session at AEW 2026 will provide a platform to examine Algeria’s exploration potential, the role of international partnerships and the investment opportunities emerging across the country’s upstream sector,” NJ Ayuk, Executive Chairman, African Energy Chamber.