China’s ZPEC has won the rights to explore Algeria’s Zerafa II natural gas block, located in the southern Gourara-Timimoun basin. The contract was awarded by Algeria’s hydrocarbon agency ALNAFT, following competition from TotalEnergies, Eni, and Equinor.
In the same licensing round—Algeria’s first under its 2019 hydrocarbons law—TotalEnergies and QatarEnergy secured the Ahara oil and gas block, a 14,900 sq. km area at the intersection of the Berkine and Illizi basins. TotalEnergies and QatarEnergy will each hold 24.5%, with Sonatrach retaining a 51% stake, in line with Algerian law.
The awards reflect a growing push by Algeria to boost upstream investment and monetize natural gas reserves, especially for export to Europe, as the continent diversifies away from Russian gas. The move also marks QatarEnergy’s first upstream venture in Algeria.
Algeria, an OPEC member since 1969, currently produces around 900,000 barrels of oil per day and is a key participant in the OPEC+ alliance managing global oil supply.