Minister Arkab Drives Hassi Messaoud Refinery Completion

Minister of Hydrocarbons, Mohamed Arkab, has called for intensified efforts and accelerated completion of the new Hassi Messaoud refinery project in the Haoud El-Hamra zone of Ouargla. The refinery, with a design capacity to process five million tons of crude oil annually, is considered a strategic national endeavor. It is designed to enhance Algeria's refining and conversion capabilities, aiming to meet growing national demand for petroleum products, particularly diesel and gasoline, thereby reducing imports and generating surpluses for export. Its proximity to the Hassi Messaoud oil fields is expected to optimize supply and distribution efficiency, reduce transport costs to southern provinces, and ensure a balanced and secure supply chain, utilizing advanced industrial technologies for high-quality, internationally compliant derivatives with improved environmental performance.

During his inspection visit, Minister Arkab, accompanied by Sonatrach CEO Noureddine Daoudi and representatives from national and international companies involved in the project, including Spain's Técnicas Reunidas and China's Sinopec, emphasized the necessity of strengthening monitoring and coordination mechanisms. He directed that all essential conditions and resources be provided to ensure the project adheres to its contractual schedule and meets specified operational deadlines. This directive aligns with President Abdelmadjid Tebboune's vision for boosting national capacities in hydrocarbon production and refining, which aims to enhance local value from Algeria's oil resources.

These efforts are integral to a broader national dynamic aimed at increasing Algeria's production capacities. This initiative has already resulted in 18 new hydrocarbon discoveries made by Sonatrach in 2026. The sector's medium-term development plan outlines a target to raise primary hydrocarbon production to 201 million tons of oil equivalent by 2030, a significant increase from the approximately 128 million tons recorded at the end of September 2026. Furthermore, the plan seeks to increase the conversion rate of hydrocarbons to over 50% from the current 30%, a move anticipated to boost added value and foster national economic development. According to a report by the African Energy Chamber, Algeria leads African hydrocarbon production, possessing significant growth potential attributed to its established infrastructure and ongoing exploration activities.