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Algeria Opens Seven Onshore Blocks to Investors

Bruce Maddy Maghreb politics and identity contributor Maghreb Insider

Post by Bruce Maddy

Algeria Opens Seven Onshore Blocks to Investors Maghreb Insider © maghrebinsider.com
Algeria Opens Seven Onshore Blocks to Investors © maghrebinsider.com

ALNAFT is offering seven onshore blocks across five Algerian basins, covering about 49,000 km². Bids are due January 25, 2027, and around 60 companies have expressed interest.

The seven blocks cover about 49,000 km², with technical and commercial bids due January 25, 2027, under ALNAFT's published timetable.

The acreage spans five basins. They include Illizi and Berkine, as well as Oued Mya and Amguid. The fifth is Benoud. The seven perimeters are Illizi Central 1 and MZaid North, followed by El Borma 2 and Bordj Omar Driss East 1. The remaining areas are El Hadjira 3, Benoud East and Touggourt South. They lie across areas associated with Illizi and Ouargla, as well as Touggourt and El Bayadh.

ALNAFT launched Algeria Bid Round 2026 on April 19. Idri Mohand Laid, Director of the Hydrocarbon Mining Domain Promotion and Valorization Division at ALNAFT, and Yasmine Deramchi, Hydrocarbon Upstream Promotion Director, promoted the opportunities at African Energy Week in Cape Town, held from October 12 to 16. Algerian outlet Echourouk reported that around 60 companies had expressed interest.

Laid said Algeria's hydrocarbon domain covers 1.7 million square kilometres, with more than 92.5% of it onshore. His presentation put the area covered by prospection, research or exploitation activity at just 44%.

ALNAFT has set January 25, 2027, for bid submission and opening. Contract signatures involving national oil company Sonatrach are planned by March 31, 2027. Hydrocarbons Law No. 19-13 governs the round, and Sonatrach retains a majority interest where applicable. Companies must prequalify through ALNAFT's Bid Round Connect platform. Each perimeter carries a non-refundable fee of $30,000.

Algeria's existing energy network is part of the offer. Laid said the country produces approximately 120 billion cubic meters of gas annually, including volumes used for gas cycling. Its domestic network includes 21,000 km of pipelines and 85 pumping and compression stations. Two export pipelines connect Algeria directly to Europe.

Laid cited Algeria's position between Africa and Europe and its logistics network as advantages for investors. The oil and gas tender is separate from the proposed hydrogen corridor toward Europe.

ALNAFT is also offering study agreements, letting companies assess hydrocarbon potential and project economics before deciding whether to invest. Qualified bidders can review technical information through virtual data rooms, which the agency opened in June 2026. Access and clarification periods run until November 30, 2026.

The round is intended to attract international investment and support new oil and gas projects. Energy and Mines Minister Mohamed Arkab has linked the licensing process to efforts to increase national production. Technical and commercial offers are due January 25, 2027, with contract signatures planned by March 31.

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