In a move aimed at bolstering its investments in the energy sector, Algerian authorities have awarded licenses to several international companies to develop five natural gas fields as part of an international tender announced by the country last year. The total production capacity of these fields is expected to reach approximately 20 billion cubic meters annually, with development work projected to take between 5 and 10 years.
The tender included six exploration sites, comprising five gas fields covering an estimated area of 139,978 square kilometers, in addition to one oil field spanning 12,759 square kilometers. This step aligns with Algeria’s strategy to increase its annual gas production from the current 137 billion cubic meters to 200 billion cubic meters over the next five years, as previously stated by Algerian Energy Minister Mohamed Arkab.
Among the companies that won the tender is a consortium comprising France’s TotalEnergies and QatarEnergy, which secured a license to develop the “Ahra” area. A consortium of Italy’s Eni and Thailand’s PTTEP won the “Reggane II” area. China’s ZPEC will develop the “Zerafa II” area, while a consortium of Austria’s Zencus and Switzerland’s Velada obtained the “Towal II” area. The “Qirn Al-Qissa II” area was awarded to China’s Sinopec.
The head of the National Agency for the Valorization of Hydrocarbon Resources, Mourad Beldjem, stated that the tender resulted in the entry of three new companies into Algeria’s hydrocarbon sector from China, Qatar, and Austria, noting that the work will be carried out in partnership with the Algerian company Sonatrach.
Hydrocarbons hold a central position in the Algerian economy, accounting for approximately 18.9% of the gross domestic product and constituting about 85% of the country’s total exports, according to government data. Algeria also possesses vast oil and gas reserves, estimated at 15.4 billion barrels of oil and 141 trillion cubic feet of natural gas, in addition to 247 discovered sites still awaiting development.
It is worth noting that this tender is the first in over a decade and is part of a series of international tenders that Algeria plans to launch over the next five years, with the aim of attracting new foreign investments to support the sustainability of revenues from the energy sector.
