Algeria Launches Major 2026 Oil and Gas Exploration Tender Offering Seven Blocks

Algeria has officially launched its Algeria Bid Round 2026 offering seven exploration blocks for oil and gas development as the North African country seeks to boost hydrocarbon production and attract foreign investment to its energy sector.

The National Agency for the Valorization of Hydrocarbon Resources ALNAFT unveiled the international tender during a ceremony in Algiers attended by Hydrocarbons Minister Mohamed Arkab and representatives from major international energy companies. The launch marks Algeria’s second major licensing round since 2024 following the implementation of new hydrocarbon legislation.

The seven blocks on offer are located in strategic basins across southern Algeria including Ouargla Illizi Touggourt and El Bayadh provinces. The specific perimeters include El Borma II El M’Zaid Nord Illizi Centre I Est Bordj Omar Driss I El Hadjira III El Benoud Est and Touggourt Sud. Officials estimate these areas contain hundreds of millions of barrels of oil reserves alongside significant natural gas volumes.

Six of the blocks will operate under production-sharing agreements with state-owned Sonatrach while one block will use a participation contract model where Sonatrach maintains at least 51 percent ownership in compliance with Algerian law.

The bidding process follows a structured timeline with registration and prequalification running until June 1 2026. Qualified companies will then gain access to geological and geophysical data packages followed by data review sessions through October 31. Final bid submissions are due by November 26 2026 with contract awards scheduled for January 31 2027.

Minister Arkab emphasized that the tender represents part of Algeria’s strategic vision to strengthen global energy security while reinforcing the country’s position as a regional energy hub. The initiative comes amid heightened global energy tensions particularly affecting Middle Eastern hydrocarbon supplies.

Algeria has committed to an ambitious investment plan worth 50 billion to 60 billion dollars to expand exploration activities and modernize energy infrastructure. The country targets doubling its natural gas production to 200 billion cubic meters annually by 2030 from current levels of approximately 137 billion cubic meters.

The bid round utilizes a fully digitized platform allowing international investors to participate in virtual data room sessions and submit applications online without requiring physical presence in Algeria. This technological approach aims to streamline the tender process while maintaining transparency standards.

The previous Algeria Bid Round 2024 concluded successfully with five licenses awarded to international consortiums partnering with Sonatrach. Notable winners included TotalEnergies working jointly with QatarEnergy which marked the Qatari company’s first entry into the Algerian market.

Algeria remains Africa’s largest natural gas producer and second-largest oil producer with hydrocarbons accounting for over 90 percent of the country’s export revenues. The nation has maintained its position as a key energy supplier to Europe particularly following recent geopolitical developments affecting regional energy security.

ALNAFT President Samir Bakhti noted that approximately 70 companies participated in the preliminary nomination process that helped identify the most attractive blocks for the current tender. The agency aims to diversify foreign partnerships while maintaining access for domestic private operators.

The licensing round reflects Algeria’s long-term strategy to develop its vast unexplored hydrocarbon resources spanning nearly 1.7 million square kilometers of mining territory. Two-thirds of this area remains unexplored or underexplored according to Sonatrach presenting significant opportunities for future development.