With its vast stretches of desert, Algeria is a key player on the world energy scene thanks to its vast hydrocarbon reserves. Mourad Beldjehem, Chairman of the Agence nationale pour la valorisation des ressources en hydrocarbures (Alnaft), revealed that the country has more than 240 as yet unexploited hydrocarbon discoveries, a potential that could transform the national economy and enhance its international stature.
With estimated reserves of 4,300 million tonnes of oil equivalent (MTOE) and annual production of 200 MTOE, Algeria has a solid base on which to support its oil industry. However, as Mr Beldjehem pointed out, the urgent need is to exploit these resources sustainably. "We need to step up exploration efforts and adopt modern technologies to minimise financial risks while maximising discoveries", he said, echoing President Abdelmadjid Tebboune's strategic directives. These technologies, capable of accurately identifying hydrocarbon-rich zones, could pave the way for discoveries as significant as those of the emblematic Hassi Messaoud and Hassi R'Mel fields.
The year 2025 marks a turning point for the Algerian hydrocarbon sector. Alnaft expects to sign ten contracts a year, maintaining a steady pace of investment. Sonatrach, the national oil giant, is in talks to sign a further thirteen contracts, while the Algeria Bid Round 2024 is expected to result in the signing of six contracts. The aim is to attract the capital needed to exploit the country's resources and diversify its international partnerships.
The Algeria Bid Round 2024 attracted a great deal of interest, with 37 companies from Europe, North America, Latin America and Asia, as well as Qatar and the Sultanate of Oman, expressing their willingness to invest. This success exceeded Alnaft's initial expectations of around thirty participants. To meet demand from investors wishing to analyse the geological and geophysical data available in the data rooms, Alnaft has extended the deadline for submitting bids to 17 June 2025. This decision is designed to maximise the appeal of the tender and attract new partners.
The revision of legislation in 2019, prompted by the mixed results of previous tenders, has created a more attractive legal framework for foreign investors. A dedicated commission oversaw the meticulous preparation of the Algeria Bid Round 2024, boosting the confidence of international partners. This framework, combined with Algeria's wealth of resources, positions the country as a preferred destination for investment in the hydrocarbon sector.
Algeria's ambition is to become a regional leader in hydrocarbons, supported by a strong political will and abundant resources. However, challenges remain, particularly in terms of sustainability. How will the country manage to reconcile intensive exploitation and preservation of the environment while maximising economic benefits? The answer lies in the adoption of innovative technologies and rigorous resource management.
With these initiatives, Algeria is giving itself the means to turn its energy potential into an economic reality. By attracting international investors and strengthening its exploration capacity, the country is establishing itself as a key player in the global hydrocarbon market.