• BP has obtained a new hydrocarbon exploration permit in eastern Algeria, marking its return less than five years after exiting the country.

• The permit allows geological and seismic studies but excludes drilling and production at this stage.

• The move reflects BP’s strategic shift back toward upstream oil and gas investment under its “Reset BP” plan.

BP has secured a hydrocarbon exploration permit in Algeria’s eastern basin from the National Agency for the Valorization of Hydrocarbon Resources. The agency announced the award on Wednesday, April 15 as part of its policy to revive exploration activity.

The designated area lies in an underexplored eastern zone that authorities consider to have significant potential. BP will conduct initial field operations focused on acquiring and interpreting geological and geophysical data.

BP will carry out seismic survey campaigns to identify subsurface resources more accurately. However, the legal framework does not authorize drilling or production at this stage. Instead, it defines an upstream phase of the oil cycle aimed at reducing geological uncertainty before any advanced exploration decisions.

Authorities granted the permit under Algeria’s 2019 hydrocarbons law, which introduced mechanisms to encourage investment in exploration, particularly in areas with limited geological data.

Return After Strategic Exit

BP’s acquisition of this permit marks its return to Algeria less than five years after its departure. In September 2022, the company announced its plan to divest its Algerian assets, including a 33.15% stake in the In Salah gas project and a 45.89% stake in the In Amenas gas project, to Eni.

The company completed the transaction in February 2023, ending nearly 30 years of operational presence in the country. BP aligned this decision with its global portfolio restructuring strategy under former CEO Bernard Looney.

BP stated at the time that it would refocus on its most profitable assets. The company also simplified its upstream portfolio and reallocated capital toward priority regions and energy transition investments.

Strategic Shift Toward Upstream

Since divesting its Algerian assets, BP has adjusted its strategy significantly. The company launched its “Reset BP” strategy in 2024 and presented it in February 2025. Under this plan, BP increased its investment in oil and gas exploration and production.

The company raised its annual upstream investment to around $10 billion, representing an increase of about 20% compared with its previous plan. At the same time, BP reduced its spending on low-carbon activities.

BP lowered its annual budgets for renewables, bioenergy, and charging infrastructure to between $0.8 billion and $2 billion, compared with about $4 billion previously.

BP has also revised some of its climate targets, particularly those related to Scope 3 emissions. The company has shifted its focus toward energy security and value creation.

The company is now implementing this strategic repositioning under the leadership of Meg O’Neill, as it balances hydrocarbon growth with evolving energy transition priorities.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange J.A de Berry Quenum