Algeria Announces $60 Billion Upstream Oil and Gas Investment, Aims to Add 3,200 MW of Renewables by 2030
The Algerian government has announced a $60 billion investment package to expand its upstream oil and gas operations, underscoring the country’s determination to leverage its vast natural resources while gradually integrating renewable energy into its national energy strategy.
Speaking at the opening of the 13th Africa & Mediterranean Energy and Hydrogen Exhibition and Conference (NAPEC 2025) in Oran, Minister of Energy and Mines Mohamed Arkab revealed that 80% of the planned investment will be directed toward hydrocarbon exploration and production, reaffirming Algeria’s commitment to strengthening its position as one of Africa’s leading energy producers.
“This investment reflects Algeria’s strategy to ensure energy security while preparing for a diversified and sustainable energy future,” Arkab said during his address.
Focus on Oil, Gas, and Emission Reduction
The minister highlighted several key initiatives by Sonatrach, Algeria’s state-owned energy company, aimed at improving efficiency and environmental performance.
Among them is a plan to reduce gas flaring to below 1% by 2030, a move aligned with global efforts to curb greenhouse gas emissions.
He also pointed to the successful operation of the Hassi Messaoud refinery, located about 800 kilometers southeast of Algiers, as an example of Algeria’s industrial resilience and technical capacity.
With over 200 oil and gas fields, Arkab emphasized that Algeria remains a secure and attractive destination for long-term energy investment.
Balancing Fossil Fuels with Renewable Energy
While reaffirming Algeria’s reliance on hydrocarbons, Minister Arkab stressed the importance of integrating renewable energy into the national energy mix.
The country is currently developing projects expected to add 3,200 megawatts of renewable capacity in the coming years—a step toward reducing dependence on fossil fuels and aligning with global sustainability goals.
This dual approach—expanding oil and gas while investing in renewables—reflects Algeria’s pragmatic stance on the global energy transition.
Unlike many European nations that are closing coal mines and scaling back fossil fuel operations, Algeria is opting for energy diversification rather than replacement, ensuring both growth and stability.
Sonatrach’s Long-Term Strategy
Rachid Hachichi, CEO of Sonatrach, praised the government’s energy roadmap, noting that the company’s five-year investment plan aligns closely with national goals.
By 2030, Algeria aims to invest a total of $80 billion across its energy sector, encompassing both fossil fuel development and renewable energy projects.
Industry observers see Algeria’s balanced strategy as a model for other resource-rich nations navigating the global energy transition—seeking to sustain economic growth from hydrocarbons while investing steadily in cleaner alternatives.
