Algeria is poised to revitalize its hydrocarbon industry with a $50 billion investment plan over the next four years, targeting exploration and production growth. A key component of this strategy is the ongoing licensing round, offering six onshore blocks to both domestic and international energy firms.
While the 2024 round concludes ahead of the Invest in African Energy (IAE) Forum in Paris this May, the event will serve as a vital platform for stakeholders to assess its outcomes, discuss sector developments, and explore collaboration opportunities for future licensing rounds.
Strategic Licensing Opportunities
The National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) has identified six onshore blocks for the current licensing round, including M’Zaid, Ahara, Reggane II, Zerafa II (to be offered as Production Sharing Contracts), and Toual and Kern El-Kassa (available as Participation Agreements). Spanning a vast 152,000 km², these blocks present significant potential for exploration and development.
ALNAFT has bolstered these opportunities with an extensive dataset, featuring over 102,000 line-kilometers of 2D seismic data and 45,000 km² of 3D seismic coverage. This comprehensive geological and geophysical information equips investors with the insights needed to evaluate Algeria’s subsurface potential and identify promising hydrocarbon prospects.
The initiative underscores Algeria's commitment to attracting energy investment and maintaining its position as a key player in the global energy market.
What to Expect
The licensing round opened on November 26, 2024, when tender documents and data rooms became accessible to interested parties. The deadline for bid submissions is April 15, 2025, and following the evaluation of bids, contracts will be officially awarded in Algiers on May 29, 2025. This carefully planned timeline reflects Algeria’s commitment to a transparent and efficient bidding process. Combined with its offering of both PSCs and Participation Agreements, this framework creates an environment conducive to collaboration, innovation and flexibility, attracting a diverse range of international and domestic investors to its hydrocarbon sector.
Moreover, the round is part of an ambitious five-year licensing strategy, which involves issuing one call per year through 2029. This long-term framework ensures a steady stream of investment opportunities, positioning Algeria as a reliable and strategic player in the global energy landscape.
Implications for the Sector
The 2024 licensing round represents a pivotal moment in Algeria’s strategy to increase hydrocarbon production and boost foreign investment. By offering expansive acreage backed by high-quality seismic data, Algeria is positioning itself as a prime destination for energy investments and new exploration activity. As part of the five-year licensing strategy extending through 2029, the round underscores Algeria’s long-term vision for its hydrocarbon sector. The regularity of these calls demonstrates Algeria’s commitment to fostering investor confidence and remaining a vital energy player in the region.
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