Algeria Oil Industry Overview
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  • Felix Tsourakis

Algeria Oil Industry Overview

Algeria is one of the most influential countries in the oil & gas industry internationally, with more than half a century of consistent success. This success is the result of several factors, with ALNAFT’s excellent leadership making excellent use of the resources available.


Algeria’s Oil Sector


Algeria has the third-largest oil reserves in Africa, with consistent and highly efficient production. The country has explored less than one-third of the available acreage, having immense potential for significant future discoveries. In order to make the most out of the opportunities, Sonatrach is investing significantly, aiming to double its annual volumes of findings. Meet with Abdelmoumen Ould Kaddour, President of Sonatrach at the Algeria Oil & Gas Summit.


Oil Production


Algeria has a stable production of 1,2 million barrels a day with many successful and highly-efficient oil fields in operation. The two most impactful oil fields are the Hassi Messaoud oil field, a super giant and one of the largest oil fields in the world, and ant the Ourhoud oil field.


Hassi Messaoud and Ourhoud


The Hassi Messaoud super giant oil field has been in operation for more than 50 years, producing more than 470,000 barrels of oil per day. The giant field consists of: Hassi Messaoud, El Gassi, El Agreb, Sotti, El Borma, Mesdar, Rhourd Chegga and Hassi Guettar. The oil field operates with peak productivity, with pipelines carrying its oil to refineries in Algiers, Arzew, Bejaia and Skikda


The Ourhoud oil field ranks among the most efficient oil fields in Africa

The Ourhoud oil field is located in the Berkine Basin, 200 km south of Hassi Messaoud. The oil field is operated by a multi-company partnership, with Sonatrach and Cepsa as the main shareholders. Sonatrach possesses 36% of the shares, Cepsa 39%, Anadarko 9%, Eni 5%, Maersk 5%, Burlington 4% and Talisman Energy 2%. The field produces 125,000 barrels, with 58 oil wells, 30 water injection wells, 1 gas injection well and 6 double injection water and gas wells.


Both fields have seen impressive increases in production, with the country aiming to increase its output by 30% in 2020. With plans to dig more than 50 wells in both fields the opportunities for service providers are more numerous than ever. Sonatrach is investing $9 billion to increase oil production within the same time frame.

ALNAFT and learn about the 41 available blocks this June at the Algeria Oil & Gas Summit.


Algeria’s oil & gas leadership


Algeria’s booming oil & gas industry is overseen and maintained by the national agency for the development of hydrocarbon resources of Algeria (ALNAFT). ALNAFT has the mission of overseeing Algeria’s significant hydrocarbon development and exploitation. ALNAFT coorganises the Algeria Oil & Gas Summit on 17-19 of June 2019 at Algiers, Algeria. Register now and book your meeting with Arezki Hocini, President of ALNAFT, here.


Sonatrach 2030: Driving development in upstream


Algeria is home to Sonatrach, one of the biggest oil & gas companies in the world, and the most influential in Africa. Sonatrach has adopted new strategies that greatly affect the oil industry in Algeria, and the Mediterranean as a whole. Sonatrach adapts to the times by launching its new development strategy, Sonatrach 2030 (SH2030).

Sonatrach 2030 is aimed at succeeding the company’s vision of:

  • Becoming the 5th largest oil & gas company in the world

  • Create programs that generation value for Algeria’s national economic development and energy transition

  • Achieve a national integration rate of 55%, while further developing algerian technical expertise


Sonatrach is aiming to double the prospecting and development of all onshore and offshore upstream activities, driven by a "resolute will" to access the country’s tremendous hydrocarbon resources. This plan involves developing both conventional and unconventional hydrocarbon resources, and includes groundbreaking methods, such as using the abundant renewable solar energy Algeria possesses to fuel oil rigs and reduce operational costs as production scales.


Sonatrach plans to explore 100,000 sq km of offshore acreage, a task that will require new investments and the development of new partnerships. Meet Sonatrach and ALNAFT and become their new partner here.


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