With global energy markets in turmoil and the world scrambling for alternatives to Gulf supplies, Algeria has moved decisively, launching an international bidding round for new hydrocarbon concessions at precisely the right moment.
The tender is part of Algeria's sweeping $50-60 billion investment plan to boost exploration © Mena Today
With global energy markets in turmoil and the world scrambling for alternatives to Gulf supplies, Algeria has moved decisively, launching an international bidding round for new hydrocarbon concessions at precisely the right moment.
The "Algeria Bid 2026" tender, managed by the national hydrocarbons agency Alnaft, covers seven exploration and production blocks across strategic southern basins, Illizi, Oued Mya, Berkine, Benoud and Amguid.
Six are offered under production-sharing agreements with state giant Sonatrach, while the seventh is structured as a participation contract in which Sonatrach retains at least 51%. Bids must be submitted by November 26, with awards scheduled for January 31, 2027.
The launch comes as oil and gas prices have surged following the Middle East conflict, which has damaged Gulf infrastructure and triggered the closure of the Strait of Hormuz, through which 20% of global hydrocarbon trade normally flows. With a ceasefire expiring in three days and tensions showing no sign of easing, energy-hungry nations are looking urgently for reliable alternatives.
Algeria, Africa's largest country, first gas exporter and a key OPEC member, is ideally positioned to fill the gap. Since Europe cut Russian gas imports following the Ukraine invasion in 2022, Algeria has become a critical natural gas supplier to the European Union.
A $50-60 Billion Ambition
The tender is part of Algeria's sweeping $50-60 billion investment plan to boost exploration, modernise energy infrastructure and double gas production to 200 billion cubic metres by 2030. Discussions are also underway with Chevron on offshore development and ExxonMobil on shale gas, of which Algeria holds vast reserves in its southern desert.
"This cycle reflects the strategic vision of the state to strengthen the attractiveness of the sector and consolidate Algeria's position as a reliable destination for energy investment", said Energy Minister Mohamed Arkab.
For a country that derives over 90% of its foreign currency revenues from hydrocarbons, the stakes could not be higher, or the timing more opportune.
Saudi Arabia has decided to postpone its flagship investment conference until next year, organizers confirmed in a statement on Monday, following deadly attacks which rocked the kingdom in recent weeks as the Middle East conflict widens, disrupting business.
Egyptian President Abdel Fattah al-Sisi said on Saturday Egypt would take any measures necessary to defend Saudi Arabia if asked, amid escalating Houthi attacks on the kingdom, and parliament announced an emergency session on Sunday.
Egyptian President Abdel Fattah al-Sissi, 71, said on Saturday that he will not seek to stay in power when his term ends in 2030.
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