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Algeria opens international tender for new oil and gas exploration areas

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The Algerian government has officially launched the "Algeria Bid Round 2026" tender, covering seven new zones for hydrocarbon exploration (Algeria Press Service, 19/04/2026).

  • The "Algeria Bid Round" represents an international open mechanism enabling oil and gas companies to submit bids for exploration permits in the designated zones, as part of initiatives to enhance investment in the hydrocarbon sector.
  • The offered zones include: El Borma II (Ouargla), El M'Zaid Nord (Ouargla), Illizi centre I, Est Bordj Omar Driss I (Illizi), El Hadjira III (Touggourt), Touggourt Sud and El Benoud Est (El Bayadh). These blocks feature numerous oil and gas discoveries, along with reservoirs and exploration targets showing varying estimated reserves and resources. 
  • According to the official Algerian news agency, certain sites hold reserves exceeding hundreds of millions of barrels (mbl) of oil, plus substantial natural gas volumes, based on the presented technical data. The "El M'Zaid Nord” zone holds resources estimated at nearly 100 mbl. The "Touggourt Sud" zone has projected resources surpassing 576 mbl.

Bid submissions will close on 26 November 2026, with hydrocarbon purchase contracts alongside state-owned Sonatrach set for signing by the end of January 2027, via either production-sharing agreements or participation agreements.

Algeria, an OPEC member, holds substantial proved crude oil and conventional natural gas reserves (1.7 Gt of oil and 4 504 bcm of gas, at the end of 2024). Additionally, it possesses vast shale gas resources estimated at 20,000 bcm, considered the world's third largest after Argentina and China. Recoverable shale oil reserves stand at 1 200 Gbl (Enerdata Global Energy Research). In October 2025, Algeria announced USD60bn investments in energy projects from 2025 to 2029 within a broad strategy to grow oil, gas, and hydrogen activities. About 80% of funding targets upstream exploration and production, with the remainder supporting refining and petrochemical efforts to increase domestic value added and cut imports (KEI, 08/10/2025).