Hydrocarbons Sector Receives DA 63 Billion for 2027

Algeria’s hydrocarbons sector is poised for significant development with a newly allocated budget of 63 billion DA for 2027, approved as part of the finance bill project. This allocation was presented by the Minister of Hydrocarbons, Mohamed Arkab, during an audit session before the National People's Assembly’s finance and budget commission. The minister outlined strategic directions and development programs aimed at reinforcing exploration and production efforts, enhancing national resource valorization, fostering transformation industries, attracting international investments and partnerships, and modernizing sector management. A key objective is to elevate primary hydrocarbons production to an estimated 201 million tonnes of oil equivalent (TEP) by 2030, a substantial increase from approximately 128 million TEP recorded in 2026.

The sector’s robust financial performance underpins these ambitious plans. Hydrocarbon export revenues reached 37.5 billion dollars by the end of September 2026, supported by a 37% rise in the average price of Algerian crude oil. Petroleum tax revenues also saw an upward trend, generating 2,841 billion DA, surpassing the 2026 finance law's forecasts by approximately 105%. To further stimulate growth, an investment envelope of about 71.6 billion dollars has been mobilized for hydrocarbon activities, with 52 billion dollars earmarked for upstream operations and nearly 13 billion dollars dedicated to refining and petrochemical projects. Major initiatives underway include a new refinery in Hassi Messaoud, an MTBE production unit in Arzew, an LAB production unit in Skikda, and a polypropylene complex in Arzew, with a similar project in Turkey.

Algeria continues to solidify its position as a reliable global natural gas supplier, evidenced by growing European demand and the renewal and signing of long-term supply contracts with several partners, including Italy, Spain, Slovenia, the Czech Republic, and Germany. Sonatrach, the national hydrocarbons group, has increased its investments by 21% to over 6 billion dollars, fostering partnerships with international companies such as Eni, Pertamina, Repsol, Sinopec, and Occidental Petroleum. Furthermore, negotiations for the Trans-Saharan Gas Pipeline (TSGP), connecting Nigeria to Algeria via Niger, are resuming according to schedule, underscoring Algeria's commitment to regional energy infrastructure and international cooperation. The recent "Algeria Bid Round 2026" also attracted interest from nearly 60 companies, demonstrating global confidence in the Algerian energy sector.