Algeria is stepping up efforts to reinvent its upstream oil and gas strategy, focusing on frontier zones, shale gas and offshore opportunities to boost production and attract new investment.

Speaking at African Energy Week 2025 in Cape Town, Samir Bekhti, President of ALNAFT – Algeria’s national hydrocarbons regulator – said the government’s priority is to unlock the country’s full potential and tap into its vast unconventional reserves.

“We’re focusing today on frontier zones to increase our reserves and production. 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,” he said.

Bekhti confirmed that Algeria has already signed eight hydrocarbon contracts in 2025, highlighting the competitiveness of its fiscal regime, and revealed that a new round of exploration blocks will be launched in early 2026. “We will propose new blocks in Q1 or Q2 of next year,” he added.

Echoing the focus on unconventional resources, Ferhat Ounoughi, Executive Vice President for Business Development and Marketing at Sonatrach, described shale gas as one of the country’s greatest strategic assets. “Our best resource is shale gas – the third largest globally – with a large portion considered technically recoverable,” he 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.”

Ounoughi also pointed to the potential of enhanced oil recovery techniques and the importance of green energy diversification. He noted that Algeria “cannot exist outside of the current geopolitical context” as it consolidates its role as a dependable supplier of gas to Europe amid ongoing market volatility.

Khaled Saidi, Managing Director for North Africa at SLB, underlined the scale of Algeria’s offshore potential, describing it as “significant and strategic”. He stressed the importance of automation and digitalisation in improving field performance and lowering costs.

Cedric Soenens, Vice President for Africa at Emerson, added that his company is working closely with Sonatrach to “support production, optimise operation costs and ensure safety” across the national operator’s assets.

International companies are also looking to gain a foothold. Massimiliano Mignacca, Managing Director of AMMAT Global Resources, called Algeria a “strategic partner for Italy” and confirmed that his firm is preparing a proposal to begin operations in the country.

With new contracts signed, a licensing round imminent and billions of cubic feet of shale gas waiting to be tapped, Algeria’s upstream revival may be just beginning.