21/04/2026 04:54 AST
Algeria has launched a global bidding round for oil and gas exploration across seven fields, in a move that underscores the OPEC member's efforts to boost production capacity and attract foreign investment amid a volatile global energy market shaped by the Iran war.
Samir Bekhti, president of Algeria's National Agency for the Valorization of Hydrocarbon Resources, known as ALNAFT, said in an interview with Asharq that the combined estimated resources of the seven fields exceed 1.8 billion barrels of oil and 8.63 billion cubic meters of natural gas.
The Algerian agency described the seven sites as having "significant untapped potential," adding that it aims to sign contracts related to the fields by the end of January 2027, reflecting a clear timeline to accelerate exploration and development, according to the Algerian News Agency.
Algeria strengthens supplies to Europe
The move comes as Algeria strengthens its energy supplies to Europe, while oil and gas flows from the Middle East remain disrupted due to the Iran war. Algeria is a key gas supplier to both Italy and Spain, which both receive supplies through different pipelines.
Bekhti added that the geopolitical situation has stimulated investment demand in Algeria's hydrocarbons sector, given its stable location and proximity to European clients.
The conflict in the Middle East has led to a near closure of the Strait of Hormuz - a vital waterway through which around one-fifth of global oil and gas supplies pass - to most tanker traffic.
The bidding round is not an isolated step, but part of a series of tenders Algeria plans to launch through 2030 as part of a strategy to increase hydrocarbon production, meet rising domestic demand, and boost exports, particularly to European markets.
The plan is seen as part of a broader policy to revive the energy sector, which forms the backbone of the Algerian economy.
Need for investment and technology transfer
Algerian Minister of Hydrocarbons and Mines, Mohamed Arkab said the country is working to attract foreign investment, transfer technology, and expand exploration and production activities amid rapid geopolitical and energy shifts that have increased the need for new investments to ensure supply sustainability, meet future demand, and strengthen energy security.
Europe sourced about 10 percent of its gas imports from North Africa last year, while Algeria was the fourth-largest supplier of liquefied natural gas to the EU by mid-2025.
The North African country, with a population of about 47 million, has long relied on some of the continent's largest oil and gas reserves to finance subsidy and spending programs, underscoring the importance of further developing the sector.
Bloomberg
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