Algeria Promotes Seven Oil and Gas Blocks to Investors at AEW 2026

Algeria’s state-owned ALNAFT is seeking international investment to unlock its largely unexplored hydrocarbon resources, with the country’s 2026 licensing round offering seven onshore perimeters across established oil and gas basins. The initiative forms part of a broader upstream investment strategy aimed at increasing production and expanding Algeria’s role as a supplier to international markets.

The opportunities were presented at African Energy Week (AEW) 2026 in Cape Town by Idri Mohand Laid, Director of the Hydrocarbon Mining Domain Promotion and Valorization Division at ALNAFT, and Yasmine Deramchi, Hydrocarbon Upstream Promotion Director at the agency. Both outlined Algeria’s resource potential, existing infrastructure and investment pathways for international companies.

“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, highlighting the scale of the country’s remaining exploration potential.

The 2026 bid round provides a near-term entry point for investors, with technical and commercial offers due by January 25, 2027. ALNAFT plans to conclude hydrocarbon contract signatures with national oil company Sonatrach by March 31, 2027, giving prospective bidders a defined timetable for progressing from evaluation to contractual commitments.

Launched on April 19, 2026, the round covers seven perimeters spanning the Illizi, Berkine, Oued Mya, Amguid and Benoud basins. The acreage covers approximately 49,000 km2, combining exploration prospects with proximity to established production areas and supporting infrastructure. More than 50 companies have registered interest, according to information presented on the initiative.

Algeria’s existing infrastructure is a central part of its investment proposition, Laid said. The country produces approximately 120 billion cubic meters of gas annually, including volumes used for gas cycling, while its domestic transportation network comprises 21,000 km of pipelines and 85 pumping and compression stations. Two export pipelines connect Algeria directly to Europe.

“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, pointing to the infrastructure supporting production, processing and exports.

Under the licensing framework, international companies can pursue opportunities through competitive bidding or direct negotiations. The bid round operates under Algeria’s Hydrocarbons Law No. 19-13, with participation structured to preserve Sonatrach’s majority interest where applicable. Investors must prequalify through ALNAFT’s Bid Round Connect platform and pay a non-refundable $30,000 entry fee for each perimeter.

Deramchi said ALNAFT also uses study agreements to help companies assess opportunities before making investment commitments. These agreements allow prospective investors to evaluate hydrocarbon potential, test project economics and build a stronger understanding of Algeria’s upstream sector, providing an alternative route for companies assessing entry into the market.

The 2026 round also introduces virtual data rooms, allowing qualified bidders to access technical information digitally. Access to the data rooms and clarification periods runs until November 30, 2026, giving companies time to evaluate the acreage and prepare proposals ahead of the January submission deadline.