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American Mud Pumps

Algeria launches new gas licensing round to drive exports


Algeria’s recent gas licensing round has sparked significant interest, especially from major international players looking to tap into the country’s vast shale resources, robust infrastructure, and close access to European markets. 

With new bidding opportunities and attractive contractual terms, Algeria aims to position itself as a key energy supplier, supporting Europe’s demand for diversified gas sources, with information from Argus.


New Gas Production Goal: Algeria’s new licensing round aims to unlock around 20 billion m³/year in gas production over the next five to ten years, with initial volumes targeted within two years.


Significant Market Potential: This production boost could represent around 40% of Algeria’s current gas exports, providing substantial supply for Europe, especially after the reduction in Russian gas exports.


Series of Bidding Rounds: The current bidding round is the first in a series of five, planned annually through 2028, with a focus on gas and onshore blocks.


Six Blocks on Offer: Five blocks contain existing gas discoveries, and one has an active oil field that could benefit from enhanced oil recovery.


Appealing to IOCs: To attract international oil companies (IOCs), the round includes opportunities for both exploration and development, offering quicker returns on investment.


Focus on Replacing Reserves: Algeria is pushing for new discoveries to replace its reserves, with Sonatrach currently the only entity exploring within the country.


Future Themes for Rounds: Upcoming rounds may vary, potentially focusing on oil or offshore exploration, depending on the success of this initial round.


Improved Contractual Terms: Algeria’s updated oil law from 2021 offers more attractive terms for IOCs compared to the previous 2014 round, which had disappointing results.


Ongoing Bilateral Negotiations: Algeria is also negotiating directly with IOCs, with four contracts expected to be finalized by the end of the year.


Interest from Major American Oil Companies: Leading U.S. oil companies are reportedly in advanced discussions with Algeria, drawn by the country’s substantial shale potential, well-established infrastructure, and strategic proximity to European markets.


These points summarize the key developments and strategic goals of Algeria’s new gas licensing round, highlighting its potential impact on the European gas market and its attractiveness to international investors.


Algeria launches new gas licensing round to drive exports
Algeria launches new gas licensing round to drive exports



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