Algerian Minister of Hydrocarbons: 7 new oil reserves in a licensing round to be decided next March

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The Algerian Minister of State and Minister of Hydrocarbons, Mohamed Arkab, said during a ministerial dialogue moderated by Al Arabiya Business on global oil and gas markets within the activities of the World Petroleum Conference held in Riyadh, that Algeria is continuing to achieve a number of achievements in the energy sector, especially in the field of strengthening infrastructure, through the establishment of many energy facilities, with the aim of increasing production and enhancing productive capabilities.

He pointed out that the efforts also include developing basic facilities for transportation, crude transformation and refining inside Algeria.

Regarding global energy markets, Arkab said that many facilities around the world aim to increase production, stressing that the various works being implemented are aimed at supporting the oil market and contributing to enhancing the required balance in global markets.

He added that the ongoing shift towards emerging economies has contributed to shaping new features of the global market, pointing out that the increasing needs in global markets have led to continued growth in demand for oil and gas.

He stressed that the global demand for energy will continue to grow, and that the new projects and facilities being implemented around the world will contribute to meeting this demand.

The minister revealed that Algeria is currently working on preparing for a new licensing round in the hydrocarbons sector, explaining that the latest process being prepared is the “Bid Round 2026”, which includes 7 oil fields.

He added that the envelopes for this round will be opened at the end of next March, noting that all of these projects are heading towards increasing oil and gas production and enhancing national production.

He explained that the goal of these efforts is to meet the growing local demand, in addition to responding to the growing demand in Europe for energy sources, especially natural gas.

Arkab revealed that Algeria affirms its solidarity with the Kingdom of Saudi Arabia and denounces the recent attacks targeting it.

He added: "I would like to express our solidarity in Algeria with the Kingdom of Saudi Arabia and with our brothers in the Kingdom. We strongly condemn these brutal attacks on the Kingdom, and Algeria always stands by the Kingdom in such circumstances."

In response to a question about Algeria's ability to enhance gas supplies to Europe and the obstacles facing this, Arkab explained that what Algeria seeks is to enhance energy security locally and extend its impact to Europe as it is one of the main markets for Algerian gas.

He said that the first step was the issuance of the Hydrocarbons Law of 2019, which he described as a flexible law that laid new foundations for partnership and attracted investors and partners who possess advanced technologies to invest in Algeria.

He added that energy security begins with investment, stressing that any decline in investment leads to imbalances in supply security, noting that energy infrastructure is available in Algeria and is currently undergoing expansion in several regions.

He pointed out that Algeria currently invests in only about 47% of the Algerian mining field, which means that there are still wide investment opportunities available, especially in the natural gas sector.

He explained that the new law gave investors great flexibility and multiple facilities, and also provided a long-term vision for investments through regulatory mechanisms and government decisions that take into account development in the hydrocarbon sector.

Arkab revealed that the trans-Saharan gas pipeline project between Nigeria, Niger and Algeria represents one of the most important strategic projects in this field.

He explained that the project's studies and feasibility studies have been finally completed, and Algeria has begun implementing the part of the project located within its territory.

He added that work is underway in cooperation with Niger and Nigeria to begin implementing their sections, noting that the first touches have been placed on the pipeline’s route from a topographic perspective inside Niger.

He stressed that the project will allow, in its first phase, the transport of 20 billion cubic meters of gas annually to Europe, with the capacity subsequently rising to 30 billion cubic meters annually at a later stage.

He said that all of these projects aim to strengthen Algerian energy security and contribute to supporting the energy security of European partners.

Arkab pointed out that Algeria is also working on implementing a solar energy program with a capacity of 3,200 megawatts, explaining that some of these projects have already entered the production stage.

He added that the implementation of the program began in 2024, and it is expected that all photovoltaic power plants will be received by the end of 2026.

He explained that this program will allow reducing the consumption of natural gas in local electricity production, allowing additional quantities of gas to be available for the local market and for export to global markets.