Summary:

On 25 February 2026, Sonatrach CEO Noureddine Daoudi outlined the company’s investment strategy for 2026–2030 in an interview with the Algerian Press Service, marking the 55th anniversary of Algeria’s hydrocarbon nationalization. 

Daoudi confirmed that exploration and production will account for 75% of Sonatrach’s development investment through 2030, anchored by a program covering 66% of the national hydrocarbon domain and including roughly 500 exploration wells alongside 3D and 2D seismic acquisition. The CEO cited 17 oil and gas discoveries in 2025 as evidence of substantial remaining prospecting potential, and noted that 26% of the overall E&P budget is earmarked for international partnerships. 

Daoudi also signaled ambitions to expand Sonatrach’s petrochemicals presence, describing a pivot from a predominantly upstream model toward one in which petrochemicals serve as a lever for industrial diversification and domestic value creation. Active projects include a polypropylene facility with Turkish firm Renaissance and ongoing studies for plastics and methanol ventures. 

These plans sit within Algeria’s broader $60 billion energy investment program for 2025–2029, with roughly 80% directed toward hydrocarbon exploration and production. 

Outlook: 

Sonatrach’s announcement reflects Algeria’s effort to arrest declining output from legacy fields and reestablish the reserve base underpinning both domestic energy security and its role as Europe’s most proximate major gas supplier. The scale of the plan signals recognition that incremental investment will not offset declines at aging giants like Hassi Messaoud and Hassi R’Mel. 

Execution risk remains the central variable. Algeria has announced ambitious investment targets in previous cycles without fully translating them into production gains, and the 49/51 ownership principle retained in Algerian law continues to complicate negotiations with international operators. Whether the 2026–2030 plan delivers meaningfully different results will depend on the pace of licensing, the quality of partnerships secured, and the government’s ability to maintain regulatory stability over the program’s duration. 

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