7 New Onshore Blocks Opened in Algeria’s 2026 Hydrocarbon Licensing Round
By Dr. Hana Saada
Seven new onshore exploration blocks have been officially opened as part of Algeria’s “Algeria Bid Round 2026”, launched on Sunday in Algiers by the National Agency for the Valorisation of Hydrocarbon Resources (ALNAFT).
The launch, which marks a new phase of upstream oil and gas licensing, aims to attract international investors following renewed interest recorded during the 2024 cycle. The ceremony was attended by the Minister of State, Minister of Hydrocarbons Mohamed Arkab, alongside ministers from the energy, industry, and knowledge economy sectors, as well as the CEO of Sonatrach, representatives of foreign companies, and members of the diplomatic corps.
The seven blocks offered for exploration are Illizi Centre I, El Borma II, El M’zaid North, El Hadjira III, East Bordj Omar Driss I, El Benoud East, and South Touggourt.
In his address, Mr Arkab described the round as “an important milestone” in the development of Algeria’s hydrocarbons sector, adding that it aligns with the State’s strategy to enhance the sector’s attractiveness, develop national resources, and consolidate Algeria’s position as a reliable destination for energy investment.
He said the initiative builds on momentum generated by the 2024 round, which he said reflected “growing confidence in Algeria’s investment climate”, and forms part of efforts to improve the business environment through clearer procedures, investment inflows, technology transfer, and skills development.
Mr Arkab also highlighted the role of industrial subcontracting, particularly involving SMEs and start-ups, in supplying spare parts and technical services to the sector. He further pointed to major infrastructure projects, including the Trans-Saharan Gas Pipeline, as part of Algeria’s broader ambition to strengthen regional energy integration.
He recalled that Hydrocarbon Law 19-13 provides “a clear and balanced legal framework” designed to protect state interests while meeting investor expectations, alongside ongoing reforms to simplify procedures, shorten timelines, and expand digital administration.
According to the minister, the 2026 round seeks to develop resource exploitation using advanced technologies, offer competitive fiscal and contractual incentives, and ensure transparency in contract allocation through ALNAFT.
Environmental considerations were also emphasised, including reductions in greenhouse gas emissions, flaring and methane emissions, alongside the deployment of carbon capture and storage technologies and improved energy efficiency. Mr Arkab said natural gas would remain central to the energy mix during the transition phase, while also noting emerging hydrogen-related projects.
ALNAFT President Samir Bekhti said the global energy environment was marked by uncertainty and rising competition, adding that Algeria was positioning itself on “stability, clarity and reliability”.
He said the Bid Round 2026 represented an evolution towards a more market-oriented approach, following the introduction of a nomination process intended to align offerings with investor expectations.
According to Mr Bekhti, the blocks were selected on the basis of geological potential and development prospects, with available data and defined structures intended to support investment decisions.
He added that ALNAFT was working to strengthen contractual frameworks, simplify procedures, and improve execution predictability, stressing that the agency’s objective was to provide “well-documented and immediately actionable opportunities”.
He further stated that Algeria was seeking long-term partnerships based on investment, innovation, and delivery, with the aim of positioning the country as a competitive destination within global energy portfolios.
The launch concluded with assurances from both officials that Algeria remains open to investment under the new licensing round.
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