Algeria plans 71.6bn dollars hydrocarbon investment by 2030

Mohamed Arkab, minister of state and minister of hydrocarbons, said Algeria plans to invest 71.6bn dollars in hydrocarbon production and processing by 2030.

He presented the programme on 17 October to the finance and budget committee of the People's National Assembly (APN). The presentation was part of the examination of the 2027 finance bill (PLF), and the total is about 63.8bn euros.

Where will the money go?

ObservAlgerie reported that 52bn dollars will go to exploration and production, while nearly 13bn dollars will fund refining and petrochemicals.

The plan aims to raise primary hydrocarbon output to 201 million tonnes of oil equivalent (TOE) by 2030.

TOE is a standard unit for comparing energy from different fuels. That is eight million TOE more than the 193 million expected in 2026.

The aim is to process more than 50% of primary output in Algeria by 2030, up from about 30% now.

Refining and petrochemicals projects include a new refinery at Hassi Messaoud, with a planned capacity of five million tonnes a year.

It is meant to help supply diesel and other fuels to the Algerian market.

At Arzew, Sonatrach is developing a unit to make methyl tert-butyl ether (MTBE), an additive used in unleaded petrol.

Which foreign partners are involved?

Arkab said Sonatrach had made 17 discoveries of hydrocarbons since January 2026.

Sonatrach works with several foreign partners, including Eni, Pertamina, Repsol, Sinopec and Occidental Petroleum.

In July 2025, Sonatrach and Italy's Eni signed a 30-year contract for exploration and development of an area of about 4,200 square kilometres.

The area lies south-east of Hassi Messaoud, and the project plans to use nearby infrastructure and technology to improve hydrocarbon recovery.

Cooperation projects with Eni at Reggane II, with announced investment of more than 8bn dollars, could raise gas output by 5.5bn cubic metres a year by 2028.

Algérie 360 reported that Eni raised its 2026 adjusted operating cash flow forecast to 16.5bn euros, in its third-quarter results.

The group also raised its share buyback programme to 3.8bn euros and gave shareholders an exceptional dividend of 1.3bn euros.

Production in its exploration and production division rose 7% on a year earlier in the third quarter, to 1.83 million barrels of oil equivalent a day.

Eni now expects its organic oil and gas output to grow by 6% to 7% over the full year.

The published results give no separate figures for production, investment or discoveries in Algeria.

When are bids due?

Algeria launched the international tender "Algeria Bid Round 2026" on 19 April.

It covers seven exploration areas, with a total area of about 49,000 square kilometres.

Arkab said about 60 companies had shown interest, and 21 met the conditions to access technical files and data rooms.

The deadline for bids is 26 November, and contracts are planned to be signed on 31 January 2027.