Algeria Launches 2026 Round with 2.1B Barrels, Eni Locks in $1.35B Deal
E•Algeria’s 2026 hydrocarbon round opened for seven onshore blocks—four in the Illizi-Ghadames basin—offering about 2.1 billion barrels of oil and 66.5 billion cubic meters of gas with bids due in November. Eni, producing roughly 140,000 boe/day in Algeria, recently agreed a $1.35 billion production-sharing deal for Zemoul El Kbar targeting 415 million boe and 9.3 billion cubic meters of gas.
1. 2026 Hydrocarbon Bidding Round
The Algerian National Agency for the Valorisation of Hydrocarbon Resources launched its 2026 onshore licensing round covering seven conventional blocks, four in the Illizi-Ghadames basin and three in the Oued Mya and Sahara basins. The offering spans existing discoveries and exploration acreage estimated to contain 2.1 billion barrels of oil and 66.5 billion cubic meters of gas, with bid submissions and contract ratification scheduled for November.
2. Eni’s Position in Algeria
Eni, active since 1981, produces around 140,000 barrels of oil equivalent per day in Algeria, making the country a core asset. The company recently inked a $1.35 billion production-sharing agreement for the Zemoul El Kbar perimeter, expected to deliver 415 million boe including 9.3 billion cubic meters of gas.
3. Infrastructure and Production Constraints
Algeria’s largest gas field, Hassi R’Mel, and its giant oil field, Hassi Messaoud, have declined to roughly 20% of initial volumes after decades of operation. Limited infrastructure in gas-prone south-west areas and the legacy of a 2005–2019 production-sharing ban have extended development timelines and capped new output.
4. Export Routes and Market Impact
Two-thirds of Algerian exports flow via pipelines—TransMed (32–35 billion cubic meters capacity) and Medgaz (10–10.5 billion cubic meters)—supplying Italy and Spain with about 30% and 25% of their gas needs, respectively. Algeria’s LNG hubs at Arzew and Skikda offer roughly 25.3 million tonnes per year, underscoring ongoing demand despite deliverability constraints.
