Summary:

On 9 April 2025, Algeria’s state-owned energy company Sonatrach reached deals with French companies Viridien and Vallorec, in the energy sector. 

The $250 million deal signed with Vallorec is to acquire OCTG (Oil Tubular Country Goods) tubes to be used in drilling and production sites.  

The deal with Viridien is for the reprocessing of seismic data acquired in 2011 and 2013 to improve the geophysical understanding of the Algerian subsoil for the exploitation of oil and gas resources. 

These deals come only a few days after French Minister Jean-Noël Barrot stated that the two countries are reactivating all cooperation mechanisms in all sectors following his meeting with President Abdelmajid Tebboune. 

Outlook: 

The de-escalation of tensions between Algeria and France is likely to facilitate more business opportunities for French companies in Algeria especially as the state intends to develop the energy sector in partnership with foreign firms. 

Although French business in Algeria remains vulnerable to political tensions between the two countries, the intention of French companies to cooperate with Algerian partners despite this fragility highlights the importance of the Algerian market. 

However, the risk remains high for companies seeking direct operations other than providing services and supplies to Algeria as many political issues are yet to be resolved. 

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