Algeria Launches $50 Bln Hydrocarbon Investment Plan with Licensing Opportunities for Global Players

New exploration and production initiatives aim to bolster Algeria’s energy sector and attract international investment through ambitious licensing rounds.

Algeria has announced a groundbreaking $50 billion investment over the next four years to revitalize its hydrocarbon sector. The plan emphasizes exploration and production activities, with a pivotal licensing round currently underway, offering six onshore blocks to international and domestic energy companies. The move forms part of Algeria’s broader five-year strategy to solidify its position as a key player in the global energy market.

The National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) has opened a competitive licensing round, highlighting six onshore blocks: M’Zaid, Ahara, Reggane II, Zerafa II, Toual, and Kern El-Kassa. Four of these blocks will operate under Production Sharing Contracts (PSCs), while the remaining two will be offered as Participation Agreements.

Spanning approximately 152,000 km², these blocks present significant exploration and development opportunities. ALNAFT has backed these offerings with an impressive dataset, comprising over 102,000 line-kilometers of 2D seismic data and more than 45,000 km² of 3D seismic data, enabling potential investors to evaluate Algeria’s vast subsurface potential effectively.

The licensing round, which opened on November 26, 2024, allows access to tender documents and data rooms. Bid submissions close on April 15, 2025, with contracts expected to be awarded in Algiers on May 29, 2025.

Expanding the Vision: A Five-Year Licensing Strategy

Algeria’s current licensing round is part of an ambitious five-year strategy extending through 2029. With plans to issue one call per year, the initiative ensures a steady pipeline of investment opportunities. This regularity, coupled with the country’s emphasis on transparency and efficiency in its bidding process, aims to boost investor confidence and encourage long-term partnerships.

Key Implications for the Hydrocarbon Sector

1. Increased Production Potential: By allocating expansive acreage supported by top-tier seismic data, Algeria is poised to attract global interest, paving the way for significant increases in hydrocarbon output.
2. Strengthened Investor Confidence: The structured five-year strategy underscores Algeria’s commitment to predictable and reliable investment opportunities, fostering confidence among international and domestic stakeholders.
3. Regional Energy Leadership: Algeria’s focus on transparent and flexible contract models (PSCs and Participation Agreements) positions the nation as a strategic energy hub in North Africa.

Additional Highlights

• Focus on Collaboration: The inclusion of flexible contract models allows for greater collaboration between state-run energy companies and private sector players, encouraging innovation and technology sharing.
• Energy Transition: Alongside its hydrocarbon efforts, Algeria is also exploring renewable energy partnerships, signaling a balanced approach to energy security and sustainability.
• Investment Forum: While the 2024 licensing round concludes before the Invest in African Energy (IAE) Forum in Paris this May, the forum will provide a platform to discuss its outcomes, analyze its implications, and foster partnerships for future licensing opportunities.

A Promising Future for Algeria’s Energy Sector

Algeria’s $50 billion hydrocarbon investment initiative signifies a bold step toward enhancing its global energy profile. The comprehensive strategy, supported by robust data, transparent processes, and ongoing partnerships, underscores the country’s commitment to innovation and sustainability in the sector.

As Algeria continues to expand its exploration and production footprint, the hydrocarbon sector is expected to play a critical role in shaping the nation’s economic and energy future, attracting significant international interest along the way.