Algeria has approved an ambitious five-year plan to revitalize its hydrocarbon sector as the country seeks to reverse declining oil and gas reserves and production caused by years of underinvestment.
State-owned energy giant Sonatrach formally endorsed the 2026–2030 development plan during a general assembly meeting chaired by Minister of Energy and Mines Mohammed Arkab. The strategy is designed to strengthen Algeria’s energy security while maximising the value of its natural resources. It focuses on a dual objective: reinforcing core upstream activities such as exploration and production to ensure sustainable supply, and accelerating the development of downstream industries, particularly refining and petrochemicals.
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Vision
The ministry said the plan goes beyond technical goals, carrying strong economic and social ambitions. These include meeting domestic energy demand, reducing fuel imports, expanding export capacity, and enhancing Algeria’s standing in global energy markets.
In October, Arkab announced that Algeria plans to invest nearly $60 billion in hydrocarbon projects over the next five years, with close to 80% of the funding allocated to boosting oil production and replenishing reserves. Additional investments will target refining capacity, petrochemical facilities and storage infrastructure.
The minister said the government has established a clear vision for sector development, supported by recent legislative reforms aimed at attracting both domestic and foreign investment. These reforms have made Algeria’s hydrocarbons framework more competitive, particularly for offshore exploration and production.
Algeria has already begun implementing the strategy. In July, the government finalised five oil development projects awarded to international companies under the 2024 licensing round. The country holds one of the world’s largest natural gas reserves, estimated at 160 trillion cubic feet, and around 13 billion barrels of recoverable oil. However, current production levels could exhaust oil reserves within three decades without significant new discoveries, according to the Arab Energy Organization.
