Algeria has launched its 2026 oil and gas licensing round, offering seven exploration areas for bidding. This initiative is part of the country's ongoing efforts to intensify exploration and attract international investment, following the award of five licences in a 2024 round and a recent prospecting licence granted to BP.

Licensing Round Process and Timeline

The round was officially launched with the presentation of legal, fiscal, and resource potential details for the seven areas. The acreage was selected based on industry interest expressed by January 31. Access to virtual data rooms and tender documents begins on June 1. Bids must be submitted by November 26 and will be opened publicly the same day. The deed of attribution for each licence is scheduled for December 15, which will enable state company Sonatrach and the winning bidder to commence exploration and production activities, with hydrocarbon contracts also expected to be signed that day. Participants must individually acquire tender documents and hold valid prequalification certificates from regulator Alnaft.

Details of the Seven Exploration Areas

The areas on offer are:

• Illizi Centre I: Located in the Illizi basin, it covers 7,441 square kilometres and contains four discoveries with combined resources of 91.2 million barrels of oil and 37.5 billion cubic metres of gas.
• El M’zaid Nord: Situated in the Oued Mya basin (4,574 sq km), it is a proven petroleum system with 11 discoveries and five prospects, estimated to hold 100 million barrels of probable resources.
• El Hadjira III: Also in the Oued Mya basin (9,230 sq km), it hosts four discoveries with 206 million barrels of oil resources.
• El Borma II: In the Berkine basin (4,870 sq km), it contains two mature oil fields, with a bid option to include enhanced oil recovery opportunities.
• Touggourt Sud: Located in the Amguid Berkine basin (4,048 sq km), it has five discoveries holding about 249 million barrels of oil resources.
• El Benoud Est: In the Benoud trough (14,213 sq km), it holds five discoveries, three prospects, and 30 leads.
• Est Bordj Omar Driss I: In the Illizi basin (4,518 sq km), it is the only area where the bidder's financial participation is fixed and defined.

Bid Evaluation Criteria

For Est Bordj Omar Driss I, bids will be evaluated solely on technical criteria. For the other six licences, evaluation will be based on both technical and financial criteria. Technical evaluation encompasses exploration, development, and production aspects, while financial evaluation includes the participation rate in financing upstream operations for production sharing contracts.