• Algeria launched “Algeria Bid Round 2026” covering seven exploration zones open to international companies.

• Bidders must submit offers by November 26, 2026, with contracts expected by January 31, 2027.

• Hydrocarbons account for 92% of exports and 43% of budget revenue, underscoring the sector’s strategic weight.

Algeria has now officially launched the “Algeria Bid Round 2026,” opening seven hydrocarbon exploration zones to global competition. Minister of State for Energy, Mines and Renewable Energies Mohamed Arkab presided over the launch ceremony, according to a report published on Sunday, April 19 by Algeria Press Service (APS).

Authorities have opened the procedure to all international oil and gas companies. Companies must submit bids by November 26, 2026. Authorities expect Sonatrach to sign exploration contracts by January 31, 2027.

This launch follows the “Algeria Bid Round 2024,” the first such process since 2014. That round resulted in the award of exploration licenses in five zones to companies of various nationalities.

Authorities have framed the entire process under Algeria’s hydrocarbons law. Arkab described the law as a guarantee for investors and for the protection of state interests. He also linked the tender to specific environmental commitments, including reducing gas flaring, controlling methane emissions from oil facilities, and developing hydrogen and carbon capture projects.

A race to replenish reserves

The tender comes as hydrocarbons remain a cornerstone of Algeria’s economy. The International Monetary Fund stated in an April 2024 report that hydrocarbons account for an average of 92% of total exports and 43% of fiscal revenues.

Hydrocarbon exports generated $45.23 billion in 2024, down from $50.49 billion in 2023, according to Algeria’s central bank annual report published in September 2025. Consequently, Algeria must renew its reserves to sustain revenues in the short and medium term.

In February 2026, Sonatrach CEO Noureddine Daoudi announced that the company will allocate 75% of its planned $60 billion investment for 2026–2030 to exploration and production. He added that the company recorded 17 new discoveries in 2025 in so-called mature basins.

This strategy aligns with the government’s objective to increase hydrocarbon output. Sonatrach targets annual gas production of 200 billion cubic meters within five years, up from about 137 billion cubic meters in 2023, according to OPEC data.

Algeria strengthened its position in European gas markets in 2025. The country became Spain’s leading natural gas supplier, ahead of the United States and Russia, according to grid operator Enagas.

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

Adapted in English by Ange J.A de Berry Quenum