Algeria rolls out red carpet for global hydrocarbon players with 2026 bid round

ALGERIA – Algeria has launched a new international bidding round for hydrocarbon exploration, inviting foreign companies to develop energy assets that ultimately supply the polyethylene and polypropylene feedstocks powering global packaging production.

The National Agency for the Valorisation of Hydrocarbon Resources (ALNAFT) is spearheading the “Algeria Bid Round 2026,” which the energy ministry describes as opening “new horizons for exploration and development.”

According to ministry statements, details will be unveiled soon, with officials previously indicating an early 2026 launch.

Building on 2024 Momentum

This follows the successful Algeria Bid Round 2024, which closed in June 2025 with five exploration licenses awarded to international groups.

That round attracted 41 companies bidding across more than 150,000 square kilometres. Winners included consortiums featuring Qatar Energy, TotalEnergies, Italy’s ENI, and China’s Sinopec.

Ambitious Production Targets

Algeria aims to boost annual gas production to around 200 billion cubic meters by 2030, up from approximately 137 billion cubic meters in 2025, according to sector authorities.

To achieve this, the country has announced a US$60 billion investment program for 2025–2029, with the bulk allocated to exploration and processing.

According to Allianz economic research, the country holds Africa’s top natural gas reserves and ranks as the continent’s second-largest reservoir, with reserves estimated to last 28 years at current extraction rates.

It is Europe’s second-largest pipeline gas supplier after Norway.

Fresh Approach for 2026

The 2026 round introduces a more flexible “Nomination Process,” allowing companies to designate preferred perimeters among 24 pre-identified blocks.

Sources indicate six to eight strategic zones will ultimately go to international competition by mid-2026.

Hotly anticipated areas include the Berkine Basin, a historic hub where production has already exceeded 1.7 billion barrels since operations began.

Strong Foundations for Investment

The 2019 Hydrocarbons Law underpins this push, introducing competitive fiscal terms and contractual flexibility.

Energy Minister Mohamed Arkab has emphasized that the framework balances state interests with attractive returns for partners.

Algeria currently produces around 947,000 barrels of oil per day, according to Trading Economics data.

What This Means for Packaging

For packaging manufacturers worldwide, these hydrocarbons are the building blocks of everyday materials.

Polyethylene and polypropylene, the workhorses of flexible films, rigid containers, and closures, begin as crude oil and natural gas extracted from sites like those in Algeria’s bid round.

As global demand for sustainable packaging grows, securing reliable feedstock supplies becomes as critical as the recycling innovations making headlines.

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