By: Oil & gas Middle east

Algeria is intensifying efforts to unlock new oil and gas resources, with officials from ALNAFT and Sonatrach outlining a strategy centred on frontier exploration, shale gas development, and offshore potential as key levers for future growth.

Speaking at African Energy Week 2025 in Cape Town, Samir Bekhti, President of ALNAFT, said the regulator’s main goal is to “reach the full potential” of the country’s substantial reserves. “We’re focusing today on frontier zones to increase our reserves and production,” he said. “We have huge unconventional reserves – over 700 trillion cubic feet of un-risked shale gas resources – and we also want to explore and develop our offshore.”

Bekhti noted that eight hydrocarbon contracts have been signed so far in 2025, reflecting investor confidence in Algeria’s regulatory and fiscal framework. He confirmed that preparations are underway for a new licensing round, with additional exploration blocks expected to be offered in early 2026.

Echoing the focus on unconventional resources, Ferhat Ounoughi, Sonatrach’s Executive Vice President for Business Development and Marketing, described shale gas as Algeria’s “best resource” and a strategic priority.

“Our best resource is shale gas – the third largest globally – with a large portion considered technically recoverable,” Ounoughi said. “Success in unlocking these reserves depends on operational efficiency. Much of the required equipment is imported, and since costs are a key element, it’s essential that we manufacture locally.”

He added that the state energy company is also advancing enhanced oil recovery (EOR) initiatives and green energy projects, positioning Algeria as a stable and reliable gas supplier to Europe amid shifting geopolitical dynamics.

Industry partners underscored Algeria’s potential in offshore and digitalised operations. Khaled Saidi, SLB’s Managing Director for North Africa, described the country’s offshore prospects as “significant and strategic”, while Cedric Soenens, Emerson Africa Vice President, said the firm is working closely with Sonatrach to “support production, optimise operation costs and ensure safety” across Algerian fields.

Interest from regional and international players is also growing. Massimiliano Mignacca, Managing Director of AMMAT Global Resources, called Algeria a “strategic partner for Italy” and confirmed that his company is preparing a proposal to begin operations in the country.

With vast untapped unconventional resources, a reformed investment framework, and renewed momentum in exploration, Algeria is positioning itself as one of Africa’s most dynamic upstream frontiers heading into 2026.