Sonatrach Group has outlined an extensive investment plan to enhance exploration within the national hydrocarbon sector, aiming to renew national oil and gas reserves. The Group’s CEO, Noureddine Daoudi, revealed that exploration and production activities alone account for 75% of the development investments planned for the 2026-2030 period.
Daoudi explained to a news agency, on the occasion of the double anniversary of the founding of the General Union of Algerian Workers and the nationalization of hydrocarbons, that Sonatrach prioritizes exploration and production as vital components for any oil and gas company. He noted that a substantial budget has been allocated over the medium term for projects in this field, with exploration and production representing 75% of Sonatrach’s total planned development investments for 2026-2030.
Under this investment framework, a massive exploration program is expected to cover 66% of the national hydrocarbon mining domain. The program includes drilling approximately 500 exploration wells, alongside an extensive program for 2D and 3D seismic data acquisition, as well as geological and geophysical processing and reprocessing studies.
Daoudi stressed the importance the group attaches to the operation and maintenance of production facilities, highlighting that production investments will specifically allow for the drilling of about 950 development wells and the execution of approximately 6,300 operations on existing wells. He pointed out that 26% of the total exploration and production investment budget is programmed within partnerships. This significant investment plan aims to renew the hydrocarbon reserve base in the medium term to meet domestic market energy needs, support major structural projects, and strengthen Algeria’s market share and position as a secure and reliable partner for international clients.
Regarding discoveries made last year, Daoudi mentioned that a total of 17 hydrocarbon discoveries were recorded, confirming that exploration prospects remain vast. He explained that complex and rich sedimentary basins hold significant potential, noting that the 17 discoveries in 2025 were located in basins described as mature.
As for the group’s approach to petrochemicals, in line with directives from President Abdelmadjid Tebboune to promote the transformation of national resources, Daoudi confirmed that Sonatrach is transitioning from a model dominated by upstream activities to an integrated model. In this new model, petrochemicals serve as a strategic lever for industrial sovereignty, economic diversification, and local value creation, while strengthening Algeria’s role as a major regional energy player.
He pointed out that projects in this sector will have a significant impact on the national economy, representing an opportunity to attract direct foreign investment, create jobs, and encourage small and medium enterprises, particularly in plastic transformation. Furthermore, these projects serve as tools to add value to hydrocarbons and meet domestic demand for petrochemical products that are currently imported.
Within the framework of partnerships, Sonatrach is working with the Turkish company Renaissance on a polypropylene project currently under development in Turkey. Daoudi confirmed that the group continues to discuss and study other petrochemical projects related to plastic and methanol production with several partners. He added that the Methyl Tertiary Butyl Ether project in Arzew, which began in 2022, has reached an 86% completion rate, with gradual production and unit commissioning scheduled for June 2026.
Regarding recent international partnerships, specifically within the Bid Round 2024, the CEO explained that 2025 was marked by the signing of eight hydrocarbon contracts with major international companies, five of which were part of the tender launched by the Alnaft agency under Law 19-13. Sonatrach is currently continuing talks with several other companies, including major firms, to sign new hydrocarbon contracts based on various memorandums of understanding signed in 2024 and 2025.
Discussing the nationalization of hydrocarbons, Daoudi considered it more than just an economic decision; it represents a founding act of national sovereignty and a strategic turning point in the building of the modern state. He added that symbolically, this decision established the recovery of natural resources after independence in 1962 by asserting full sovereignty over energy wealth, allowing for the construction of an integrated national energy model around Sonatrach.
He concluded that this history embodies a new challenge: transforming the legacy of sovereignty into a lever for economic diversification, local value creation, and technological innovation. He emphasized that the current stage requires a forward-looking vision aimed at a sustainable energy mix that reinforces Algeria’s role as a reliable and flexible exporter.
DzWatch.
