Algeria Oil and Gas Market Size, Share Global Analysis Report, 2026-2034

Industry Insights

[242+ Pages Report] According to Facts & Factors, the global Algeria Oil and Gas market size was estimated at USD 50.2 billion in 2025 and is expected to reach USD 85.6 billion by the end of 2034. The Algeria Oil and Gas industry is anticipated to grow by a CAGR of 6.1% between 2026 and 2034. The Algeria Oil and Gas Market is driven by increasing foreign investments and rising demand for natural gas in Europe.

Market Overview

The Algerian oil and gas market encompasses the exploration, production, transportation, refining, and distribution of hydrocarbons within the country, focusing on crude oil and natural gas resources that form the backbone of its energy sector. This market involves upstream activities like drilling and extraction, midstream operations including pipelines and storage, and downstream processes such as refining and petrochemical production, all aimed at meeting domestic needs and supporting export revenues without relying on imported energy.

Key Insights

• As per the analysis shared by our research analyst, the global Algeria Oil and Gas market is estimated to grow annually at a CAGR of around 6.1% over the forecast period (2026-2034).
• In terms of revenue, the global Algeria Oil and Gas market size was valued at around USD 50.2 billion in 2025 and is projected to reach USD 85.6 billion, by 2034.
• The global Algeria Oil and Gas market is projected to grow at a significant rate due to the new hydrocarbon investment laws attracting foreign capital.
• Based on the Sector, the Upstream segment accounted for the largest market share of around 76% in 2025, due to its focus on exploration and production in mature fields and emerging offshore blocks.
• Based on region, Middle East & Africa was the leading revenue generator in 2025, with 40% share, due to Algeria's abundant reserves and strategic position as a key supplier to Europe.

Growth Drivers

• New Hydrocarbon Investment Laws Attracting Foreign Capital

The 2019 hydrocarbon law revisions have reduced Sonatrach's mandatory stake and streamlined taxes, encouraging international oil companies to invest in exploration and production. This has led to new partnerships and increased drilling activities, boosting output from key basins like Hassi Messaoud.

These reforms enhance project economics, making Algeria more competitive in attracting technology and expertise for enhanced recovery techniques. As global energy demand rises, this driver supports sustained growth by expanding reserves and production capacity.

Restraints

• Declining Production from Mature Fields

Aging infrastructure in onshore fields has led to natural decline rates, requiring significant investments in maintenance and enhanced recovery, which strain budgets and limit short-term growth potential.

Political and security concerns in certain regions deter foreign investment, complicating operations and increasing costs for security measures. These factors collectively hinder the pace of market expansion despite reform efforts.

Opportunities

• Expansion of LNG and Pipeline Exports to Europe

Rising European demand for diversified gas supplies post-Russia-Ukraine conflict opens avenues for Algeria to upgrade LNG facilities and pipelines, potentially increasing export volumes and revenues.

Offshore exploration in untapped Mediterranean blocks offers new reserve potential, attracting tech-savvy partners. This opportunity diversifies the energy mix and strengthens Algeria's position as a reliable supplier.

Challenges

• Political Instability and Regulatory Uncertainty

Frequent policy changes and bureaucratic hurdles create uncertainty for investors, delaying project approvals and increasing operational risks in a volatile geopolitical environment.

Aging infrastructure requires massive upgrades, but limited domestic technical expertise necessitates reliance on foreign firms, escalating costs, and timelines. These challenges impede efficient market development.

Report Scope

Market Segmentation

The Algeria Oil and Gas market is segmented by Sector, and region.

Based on Sector Segment, the Algerian Oil and Gas market is divided into Upstream, Midstream, Downstream, and others. The most dominant segment is Upstream, which holds the largest share due to its critical role in exploration and production from vast reserves, enabling high revenue generation; it drives the market by attracting foreign investments and supporting export growth through increased output. The second most dominant is Midstream, essential for transportation and storage infrastructure; this segment advances the market by facilitating efficient exports to Europe, enhancing energy security and revenue streams.

Recent Developments

• In May 2024, ExxonMobil signed a memorandum of understanding with Sonatrach for exploration opportunities in the Ahnet and Gourara basins, aiming to boost gas production.
• In April 2024, TotalEnergies extended its partnership with Sonatrach for the Timimoun gas field development, committing to deliver 2 million tons of LNG to France in 2025.
• In March 2024, Sonatrach completed a significant extension of the Skikda LNG plant, increasing production capacity by around 20% to enhance export capabilities.

Regional Analysis

• Middle East & Africa to dominate the global market

Middle East & Africa dominates the global Algeria oil and gas market, driven by abundant hydrocarbon reserves and strategic infrastructure that position the region as a key energy hub. Investments in exploration and production enhance output, while partnerships with international firms bring advanced technologies. Algeria emerges as the dominating country, leveraging its vast natural gas fields and export pipelines to Europe, fostering economic growth through diversified energy supplies and government initiatives that promote sustainable development and attract foreign capital for upstream projects.

North America plays a supportive role in the global Algeria oil and gas market through technological collaborations and investments in Algerian projects. The region's expertise in advanced drilling techniques aids efficiency improvements. The United States stands out as the dominating country, with companies like ExxonMobil engaging in exploration agreements, contributing to reserve expansion and production optimization while benefiting from Algeria's strategic position in global energy trade.

Europe significantly influences the global Algeria oil and gas market as a major importer of Algerian natural gas, driving demand for expanded exports. Infrastructure upgrades and LNG deals strengthen supply chains. Italy dominates as the key country, with Eni partnering extensively with Sonatrach on gas fields, ensuring energy security and supporting Algeria's market growth through joint ventures in production and transportation.

Asia Pacific is increasingly engaging in the global Algeria oil and gas market through investments and technology transfers for exploration. Growing energy needs spur interest in Algerian resources. China leads as the dominant country, with CNPC involved in upstream projects, enhancing production capabilities and fostering bilateral ties that expand Algeria's market reach in Asia.

Latin America has limited but growing involvement in the global Algeria oil and gas market, primarily through potential partnerships in technology and services. Emerging interest in diversification opens avenues. Brazil emerges as the dominating country, exploring collaborations in offshore expertise, which could aid Algeria's Mediterranean blocks and contribute to mutual growth in the energy sector.

Competitive Analysis

The global Algeria Oil and Gas market is dominated by players:

• Sonatrach S.p.A.
• Eni S.p.A.
• China National Petroleum Corporation
• Equinor ASA
• BP Plc
• TotalEnergies SE
• ExxonMobil Corporation
• Occidental Petroleum Corporation
• PTTEP
• Repsol S.A.

The global Algeria Oil and Gas market is segmented as follows:

By Sector

• Upstream
• Midstream
• Downstream
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America