Algeria's upstream regulator Alnaft will undertake a "nomination process" with potential bidders before starting its next licensing round in either the fourth quarter of this year or the first three months of 2026, its new chairman Samir Bekhti told Argus.
The licensing round would be the second of a planned five up to 2028. Alnaft announced the results of its first, gas-focused round in June, with five of six blocks awarded to firms including TotalEnergies, Italy's Eni and China's state-controlled Sinopec.
The winners have committed to at least $553mn of total capital investments, Bekhti said, which could rise depending on exploration results and development plans.
While the licensing round was deemed a success, with almost all blocks awarded, there was a lack of competition. Only one block — Zerafa II — received more than one bid.
"We didn't listen to the industry, to the market before deciding on the [blocks] and whether the theme was attractive or not," Bekhti said. "For this next one, we are planning to launch a nomination process."
Bekhti said this would allow potential bidders to specify the blocks that interest them.
"We are discussing everything, the rules of the bid round, the economic aspect, the qualifications, conditions, we are open to hear from them and for sure, we will adjust," he said.
The licensing rounds are part of Algeria's attempts to attract foreign investment in its upstream sector and boost oil and gas output. State-owned Sonatrach wants to capitalise on Europe's energy security challenges and replace some of the lost gas flows from Russia since Moscow's invasion of Ukraine in 2022.
But this is a work in progress. Algeria's gas exports have been squeezed in recent years by natural decline at producing fields and by strong domestic consumption. Gas output and exports fell by 7pc to 98.3bn m³ and 48.5bn m³, respectively, in 2024.
The licensing rounds are one part of Algeria's plan to increase output. The country is holding bilateral talks with firms including ExxonMobil and Chevron that have visited Algeria in recent weeks. The US majors have been in long-running, separate discussions with Algeria about the country's hydrocarbon potential, including its shale resources.
"The concrete deals are coming. It's coming, and we expect [them] before the end of the year," Bekhti said. "We are expecting a big amount of investment. They will bring all the technology they have."
