Algeria signs two oil assessment agreements with Petrogas E&P

Alnaft has signed two study agreements with Omani firm Petrogas E&P on the Touggourt and Berkine basins, aiming to update hydrocarbon potential in key oil-producing areas.

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The National Agency for the Valorisation of Hydrocarbon Resources (Alnaft) has signed two study agreements with the private Omani company Petrogas Exploration & Production (Petrogas E&P), targeting the oil basins of Touggourt and Berkine. The agreements were formalised on the sidelines of the North Africa Petroleum Exhibition and Conference (NAPEC 2025), held in Oran.

The two perimeters are classified as “mature” zones, where oil activity remains ongoing but requires technical reassessment to sustain or increase output levels. The Touggourt field, located in the southeast of the country, has experienced a gradual increase in production since 2016, reaching 60,000 barrels per day in 2023, compared to around 45,000 previously.

A strategic geological update

The planned studies will involve reinterpretation of seismic data, geological structure analysis and evaluation of existing reservoirs. The objective is to determine the remaining recoverable potential, with no immediate exploitation commitment. These initiatives are part of Algeria’s strategy to stabilise production at around 1 million barrels per day, after reaching 947,000 b/d by the end of August according to the latest available data.

In the Berkine basin, located in the east of Algeria, several significant discoveries were reported in 2023 by Sonatrach and its partners. Reported flow rates reached up to 3,000 barrels per day of oil and 219,000 cubic metres per day of gas, reinforcing the strategic importance of this historically productive area.

A contractual framework under national legislation

The agreements signed between Alnaft and Petrogas E&P are governed by Hydrocarbons Law No. 19-13, which came into effect in 2019. This legal framework allows for study contracts without the automatic granting of exploitation rights, aiming to attract partners while reducing geological risk.

Since 2022, Alnaft has entered into around ten similar agreements with various international players. The stated objective remains the consolidation of the national production base through enhanced subsurface knowledge, particularly in already exploited perimeters.

According to Groupement Berkine, comprising Sonatrach, Occidental Petroleum and Eni, the region has produced more than 1.7 billion barrels since the start of operations. This cumulative volume reflects the economic significance of the targeted fields, as Algeria seeks to reinforce the stability of its energy exports.

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