Algeria has taken a significant step to expand its hydrocarbon sector by signing two agreements with American energy giant Occidental Petroleum (OXY) in Algiers on 17 August 2025.
The agreements focus on assessing the oil potential of strategic areas in southern Algeria, signaling the prospect of new investments in the country’s energy landscape.
The National Agency for the Development of Hydrocarbon Resources (ALNAFT) formalized the deals, which specifically target the El Ouabed region in the Benoud Valley and the Dahar area, situated north of the Berkine and Oued Mya basins. According to Algérie Eco, the studies will evaluate the development prospects of these regions, both considered crucial for Algeria’s national production capacity.
“These studies aim to determine the development prospects of these areas,” ALNAFT said in a press release, noting that a report on the results will be published upon completion, providing insight into future exploitation opportunities.
Occidental Petroleum, present in Algeria since the 1980s, is already active in major projects including Ourhoud, Hassi Berkine, and El Merk. Its long-standing presence in the country equips the company with extensive knowledge of the Algerian subsoil, giving the joint ventures strong technical grounding.
For ALNAFT, the agreements represent a strategic move to diversify international partnerships and optimise the use of national hydrocarbon resources. In a context of growing global energy demand and the need to secure domestic supply, identifying new deposits remains a priority for Algeria.
The agreements fall under the legal framework governing Algerian hydrocarbons, which encourages exploration and development collaborations with foreign partners. Officials have described the partnership as a potential model for future cooperation, particularly in the gas sector.
While the next steps will depend on the results of technical evaluations, both ALNAFT and Occidental Petroleum have expressed their commitment to a long-term collaboration in exploration and development. The initiative reflects Algeria’s ongoing efforts to strengthen its energy sector, attract foreign expertise, and ensure sustainable exploitation of its hydrocarbon resources.
This partnership underscores Algeria’s ambition to remain a major player in Africa’s oil and gas industry while exploring opportunities for broader international collaboration.
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