Summary:

An 8 May 2025 report by Attaqa, based on data from the Energy Research Unit, indicated a 2.3% increase of Algerian oil exports in April. This increase equates to 11,000 barrels per day in increased exports, marking the highest level of export in the last two and half years. 

Meanwhile, Oman’s Abraj Energy Services signed a joint venture agreement with Algeria’s Sonatrach to offer integrated oilfield services including drilling, workover and other well services. 

Algeria previously signed deals with Sinopec, and Chevron, with Algerian officials stating that over that 37 international companies expressed interest in investing in Algerian hydrocarbon during the “Algeria Bid Round 2024” call for tenders.  

However, a report from Fitch Solutions warned of the impacts of the current drop in oil prices on the Algerian economy as the 2025 budget was based on a barrel price of $70 and not $60, which is where prices were recorded on 9 May 2025. The report also predicts a decline in Algerian oil production beginning in 2027 due to a lack of new projects and aging facilities at existing fields. 

Outlook: 

Algeria is likely to continue seeking international partnerships to explore energy fields and enhance production and export as it is relying on this strategic sector to drive its economy and plans for economic evolution. 

However, the current drop in oil prices is likely to impact Algeria’s budget and policies, with efforts to preserve foreign currency reserves and sustain essential goods imports. 

Infrastructure projects may be delayed as revenue forecasts are cut to reflect the shift in expectations of oil revenues. The drop may push Algeria to review its production in coordination with OPEC states to stabilize the prices. 

The volatility of the oil market is also likely to push Algeria to accelerate its energy transition and green energy projects in cooperation with international partners. Such a move is likely to provide opportunities for businesses in green energy, but seizing this opportunity in a timely and effective fashion amidst competition from North African neighbors will require deft execution by the Algerian government and industry. 

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