Algeria is riding a wave of unprecedented growth in its hydrocarbon sector, buoyed by shifting geopolitical dynamics in Europe.
Following the European Union’s embargo on direct energy trade with Russia due to the ongoing conflict in Ukraine, European countries have urgently sought alternative energy suppliers.
This shift has catapulted Algeria into the spotlight as a key strategic partner.
Exports of petroleum products to Italy, one of Algeria’s major European clients, have surged beyond €266 million, now accounting for 7% of Algeria’s total exports to the country.
This surge underscores Algeria’s rising prominence as an energy hub amid a volatile global market.
Reflecting this momentum, Algeria’s national oil company Sonatrach recently awarded a significant $855 million contract to the Chinese energy conglomerate Jereh Oil & Gas Engineering. The deal focuses on the development of the Rhourde Nouss gas field in the Illizi region in eastern Algeria, a site of major strategic importance.
Further cementing Sino-Algerian collaboration, Sonatrach and China’s state-owned Sinopec have inked a new framework agreement to explore cooperation in the Gourara and Berkine-est basins.
The agreement includes a six-month assessment period—extendable as needed—to thoroughly evaluate the potential of these promising areas.
Rachid Hachichi, Sonatrach’s CEO, hailed the partnership as a milestone in sustainable development, emphasizing the “long-standing alliance” with China.
This deal builds on decades of cooperation, dating back to joint projects at the Zarzaitine and Hassi Berkane Nord fields since 2002.
Algeria’s expanding ties with China reflect a broader strategy to diversify its international partnerships and sustainably manage its natural resources amid rapid geopolitical shifts.
For Beijing, this alliance is a strategic foothold in a region experiencing swift social and economic transformation, reinforcing China’s influence in North Africa’s evolving energy landscape.
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