Algeria to Launch Major Annual Hydrocarbon Tenders: Energy Projects Surge Amid International Partnerships

BY: Dr. Hana Saada

Algiers, Algeria | October 16th, 2024 — Algeria’s hydrocarbon sector is poised for a significant transformation as the nation prepares to launch annual tenders, attracting a stream of energy contracts and projects from leading international companies. This comes as the country leverages the incentives provided by the new Hydrocarbons Law, showcasing its strategic commitment to becoming a regional powerhouse in energy production and innovation.

Murad Belgham, President of the National Agency for Hydrocarbon Resources Valorization (ALNAFT), revealed this during a panel discussion at the North Africa and Mediterranean Energy and Hydrogen Expo (NAPEC 2024), which is being held in Oran until Wednesday. Speaking at the event, Belgham confirmed that Algeria is currently engaged in bilateral negotiations with international energy firms for 13 oil and gas projects in collaboration with the state-owned company, Sonatrach.

Sonatrach Engages in Major Negotiations for 13 Oil and Gas Projects

Algeria’s 2029 Hydrocarbons Law has empowered Sonatrach, the national oil company, to negotiate contracts directly with foreign energy firms. Since the law’s enactment, numerous high-profile agreements have been signed, including partnerships with energy titans such as Eni, Sinopec, Total, Equinor, and U.S. heavyweights ExxonMobil and Chevron. These contracts highlight the growing confidence in Algeria’s energy sector and its potential to play a leading role on the global stage.

Belgham noted that the tender launched this Monday—the first since 2014—features six exploration blocks and has already captured the attention of major U.S. and European companies. He added that ALNAFT intends to launch an international tender every year moving forward, further solidifying Algeria’s position as a hub for global energy investments.

Up to 18 Projects Set for 2025 International Tender

Belgham also disclosed that 11 additional oil and gas projects are ready to be put to tender in the upcoming year, with the potential for seven more projects to be included as they complete the information-gathering phase. This aggressive expansion strategy underscores Algeria’s commitment to unlocking its vast energy resources, with a focus on attracting cutting-edge technology and investment to optimize production and sustainability.

In a move that reflects the strengthening of its international partnerships, Sonatrach recently signed a memorandum of principles with its U.S. partner Occidental Petroleum Corporation (Oxy) to deepen their existing collaboration. The agreement outlines a framework for future contracts in the Berkine Basin and marks a significant milestone in Algeria’s efforts to expand its upstream oil and gas capabilities.

Sonatrach Partners with Occidental and Norwegian Firms for Green Energy Initiatives

Further demonstrating its commitment to energy transition and sustainability, Sonatrach signed a memorandum of understanding with the Norwegian investment fund ICI Finance A/S at the NAPEC expo. This agreement aims to explore joint projects in emissions reduction, aligning with Algeria’s broader strategy to combat climate change and reduce greenhouse gas emissions from oil and gas operations.

ICI Finance A/S is a climate-focused investment fund that specializes in identifying and supporting projects aimed at lowering carbon emissions. The agreement underscores Algeria’s willingness to adopt new technologies that will enable it to remain competitive in a rapidly evolving global energy market.

According to Sonatrach CEO Rachid Hachichi, the partnership with the Norwegian fund forms part of the company’s long-term climate strategy, as Algeria seeks to play a leading role in the global energy transition. The collaboration also opens the door for Algeria to establish itself as a regional leader in low-carbon solutions and energy innovation, with potential export opportunities for these technologies.

Positioning for the Future: The Impact of Algeria’s Hydrocarbon Strategy

The introduction of annual tenders and the steady flow of new contracts signify Algeria’s growing ambition to transform its energy sector. By fostering partnerships with leading international players and focusing on sustainability, the country is positioning itself as a major player in both traditional and renewable energy markets.

With the global demand for cleaner energy solutions on the rise and increasing scrutiny of carbon emissions, Algeria’s forward-thinking strategy is expected to yield long-term economic and environmental benefits. Through initiatives like the partnership with ICI Finance A/S, Algeria is also laying the groundwork for a more sustainable and diversified energy future, in line with international climate commitments.

As global energy dynamics shift, Algeria’s proactive approach and willingness to embrace both established and emerging technologies offer the country a competitive edge. With the potential for even more partnerships and projects in the years to come, Algeria’s hydrocarbon sector is poised for significant growth, underscoring its role as a key player in the global energy landscape.

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