Algiers, Algeria – The Algerian energy sector experienced a dynamic year in 2025, marked by a series of agreements and projects hailed as the most significant in years. These developments have solidified the nation’s position as a pivotal player in oil, gas, and electricity markets, while also establishing a growing presence in clean energy initiatives.
These deals, according to industry analysis, are not merely circumstantial but rather reflect a strategic direction focused on diversifying partnerships, expanding investment opportunities, and optimizing the exploitation of natural resources.
DZWatch has learned that Algeria adopted a dual approach in 2025, maintaining support for oil and gas exports and modernizing its electricity infrastructure, while simultaneously accelerating its involvement in renewable energy and hydrogen projects, aligning with global energy transitions.
A close examination of these agreements reveals a governmental vision aimed at enhancing production efficiency, creating local added value, and reinforcing Algeria’s image as a reliable partner in energy security, particularly for Europe and the Mediterranean region.
March 2025 witnessed an unprecedented move in Algerian oil exports, with shipments reaching Nigeria for the first time in three years, a notable shift from traditional routes to Europe and Asia. The total exports to Nigeria amounted to approximately 1.38 million barrels, averaging nearly 44,000 barrels per day, comprising 1.0234 million barrels of crude oil and 354,200 barrels of naphtha, demonstrating Algeria’s supply flexibility and product diversity.
This development is particularly significant given Nigeria’s status as the second-largest African nation in terms of oil reserves, opening up broader prospects for energy integration within the continent.
In July 2025, Algeria further strengthened this trajectory by signing five new development contracts covering an estimated 560 million barrels of reserves, as part of an international licensing round involving eight global companies, with investments exceeding $606 million.
Details of gas partnership deals will be published in a follow-up report.