Algeria will host its bid opening ceremony for its 2024 Bid Round on June 17, 2025, the country’s upstream regulator the National Agency for the Valorization of Hydrocarbon Resources in Algeria (ALNAFT) announced. Opened in November 2024, the bid round featured six onshore blocks and has piqued the interest of 41 operators. The country is now planning to launch its 2025 Bid Round in Q4 this year.
Speaking in a webinar hosted in partnership with the African Energy Chamber (AEC) and Wood Mackenzie, Mourad Beldjehem, Chairman of the Board of Directors of ALNAFT, explained that the country has a multi-year licensing strategy in place, aimed at attracting international oil companies (IOC) to the country’s oil and gas market. Acreage available in the 2024 Bid Round is supported by a wealth of geological and geophysical data, offering investors a comprehensive overview of the country’s subsurface.
“Algeria’s five-year plan features multiple licensing rounds, focusing on high-potential geological zones, combining greenfield and low-risk brownfield assets to attract a spectrum of industry players. Bid Round 2024 is underway, with 41 companies expressing interest. We received interest from IOCs from all over the world, including North America, Asia and more. We are optimistic that we will award five out of six blocks, at least. The next bid round, we will select the same type of blocks, featuring both exploration and development [opportunities],” he said.
Titled Unlocking North Africa’s Gas Riches: Focus on Algeria, the session falls part of a series of webinars organized by the AEC ahead of this year’s African Energy Week: Invest in African Energies – taking place September 29 to October 3, 2025, in Cape Town. The webinar offered direct insight into Algeria’s natural gas market, highlighting the role recent regulatory reforms have had on the market. The 2024 Bid Round represented the country’s first in a decade, and the 2025 Bid Round is anticipated to build on its success to entice further investment in Algeria’s upstream market.
“Gas has become particularly important in the world. We have seen an increase in African gas production, specifically Algeria. The country is located close to a large consumer market in Europe and it is a text book example of how you can improve fiscals to attract significant amounts of investments,” stated Verner Ayukegba, SVP, AEC.
Regulatory reform has played a major part in reversing Algeria’s oil and gas production decline. According to Martijn Murphy, Principal Analyst, Wood Mackenzie, the country’s production was on a declining trajectory until 2021, when projects incentivized by a new Hydrocarbon Law – adopted in 2019 – turned this trend around. Now, Algeria is on track to maintain sales gas production of 10 billion cubic feet per day until the end of the decade.
“New fiscal terms are beginning to yield foreign investment. In 2019, the country introduced a new Hydrocarbon Law, which we consider a marked improvement from the 2013 terms. Production so far this year has rebounded. Our outlook excludes contributions from yet-to-find discoveries – which we expect to be made following licenses awarded this year – and unconventionals. Algeria is also starting to look serious about shale gas development, following MoUs signed last year,” Murphy shared.
This anticipated rebound in production will not only bring benefits to the local market, but support global demand through Algerian exports. Given its strategic location and heightened European demand, the country aims to consolidate its position as a leading European supplier. With Algeria seeking to increase annual gas production to 200 billion cubic meters over the next five years, the country is expected to play a much larger role in supporting European demand.
Gavin Thompson, Vice Chair: EMEA at Wood Mackenzie, stated that “Overall, European gas demand remains strong in a turnaround by 2030. The ever-changing geopolitical landscape is impacting the European market. Looking at the potential outcomes of a Ukraine peace agreement, that has big implications on European gas markets.”
Distributed by APO Group on behalf of African Energy Chamber.
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