Algeria’s Bid Round Paves Way for $50B Hydrocarbon Investment Drive

As part of a five-year licensing strategy, Algeria’s ongoing bid round aims to drive significant upstream investment and will be highlighted at the Invest in African Energy Forum in Paris this May

Algeria is set to invigorate its hydrocarbon sector with a substantial $50 billion investment over the next four years, focusing primarily on exploration and production activities.

Central to this initiative is an ongoing licensing round, offering six onshore blocks to international and domestic energy companies. Although the 2024 round closes before the Invest in African Energy (IAE) Forum, taking place in Paris this May, the forum provides a platform for stakeholders to analyze the implications of this strategy, discuss upcoming results and explore partnerships for future rounds. Below is an overview of the available licensing opportunities, from technical specifications to potential implications for the sector.

Technical Specifications

The National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) has identified six onshore blocks for its current licensing round, which opened in November. These blocks include M’Zaid, Ahara, Reggane II and Zerafa II, which will be offered as Production Sharing Contracts (PSCs). Additionally, Toual and Kern El-Kassa will be made available as Participation Agreements. Together, these blocks cover approximately 152,000 km², representing a significant area for exploration and development.

These opportunities are supported by a wealth of geological and geophysical data. ALNAFT has compiled over 102,000 line-kilometers of 2D seismic data and more than 45,000 km² of 3D seismic data. This extensive dataset offers investors a clear and comprehensive view of Algeria’s subsurface potential, aiding in the identification of promising hydrocarbon prospects.

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.

IAE 2025 is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers.

Source: APO Group on behalf of Energy Capital & Power.