Algeria launched a new oil and gas licensing round this week in a bid to boost output and attract foreign investment, as its hydrocarbon exports decline, but analysts say persistent regulatory and operational obstacles continue to dampen investor confidence.
The gas rich OPEC member unveiled over the weekend “Algeria Bid Round 2026,” offering seven onshore exploration blocks in Ouargla, Illizi, Touggourt and El Bayadh, areas the government says could hold hundreds of millions of barrels of oil and significant natural gas reserves.
The launch comes at a sensitive moment for Algeria, whose export performance has weakened despite high prices in recent years. According to central bank data, Algeria’s hydrocarbon export revenues fell to about $45.2 billion in 2024 from $50.5 billion in 2023, reflecting lower volumes rather than price effects.
In volume terms, natural gas exports dropped to around 101 billion cubic meters in 2024 from roughly 107 bcm a year earlier, as domestic consumption rose and supply constraints persisted.
Crude oil and condensate exports also declined by about 5% year on year, tracking a longer term fall in upstream output from ageing fields, according to OPEC data.
Hydrocarbons account for more than 90% of Algeria’s exports and around 40% of budget revenues, making reserve renewal and upstream investment critical for fiscal stability.
The technical phase of the tender will begin on June 1, with access to seismic data and bid documents, followed by clarification sessions until Oct. 31.
Bids are due on Nov. 26, and contracts are to be signed early next year under production sharing or participation agreements with state oil firm Sonatrach.
However, previous licensing rounds attracted limited foreign participation. Analysts point to regulatory uncertainty, complex procedures, limited operator control and fiscal rigidity as continuing deterrents, even after Algeria’s 2019 hydrocarbons law promised more flexible terms.
The U.S. Energy Information Administration has noted that Algeria’s crude output has been on a declining trend for more than a decade, partly due to insufficient exploration investment, despite vast underexplored acreage.
The IMF has warned that without sustained foreign participation, reserve depletion could accelerate, further weighing on exports.
