Summary:

On 22 January 2026, Algerian state-owned energy company Sonatrach signed a memorandum of understanding (MoU) with the Société des Hydrocarbures du Tchad (SHT) during the SEMICA Tchad 2026 exhibition.  

The agreement was signed by Sonatrach CEO Noureddine Daoudi and a representative of SHT, under the supervision of Algeria’s Minister of Hydrocarbons and Mines Mohamed Arkab and Chad’s Minister of Petroleum, Mines, and Geology Ndolindji Alex Naïmbaye. 

According to the Algerian ministry statement, the MoU establishes a framework for cooperation across the hydrocarbon value chain in Chad, covering exploration, development, production, transport, and resource valorization. It also includes the exchange of technical expertise, training, capacity building, and technology transfer, aimed at strengthening SHT’s capabilities. 

Outlook: 

With this agreement, Algeria’s Sonatrach continues an ongoing effort to expand initiatives and cooperation with regional partners, particularly through South-South partnerships, to strengthen ties with African countries.  

While this reflects Algeria’s engagement in a fast-moving and competitive regional environment, the initiative could also pave the way for further regional collaborations, enabling Algiers to restore its continental influence and reinforce its diplomatic posture amid ongoing geopolitical and strategic shifts in the region. 

While competition with Morocco for regional influence remains a persistent motivator in Algerian foreign policy, influence in the Sahel poses both direct economic and security benefits for Algeria, particularly given the interconnectivity of Algeria’s south with broader regional dynamics. 

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