Algeria Invites Azerbaijani Firms to Its 2026 Bid Round

Algeria has invited Azerbaijani companies to bid in Algeria Bid Round 2026, its tender for seven exploration areas, after talks between the two countries' energy ministers in Moscow on 26 October, according to a Radio Algérienne report. ALNAFT, the agency running the round, estimates about 1.8 billion barrels of cumulative resources in the seven areas, Maghreb Emergent reported.

Minister of State, Minister of Hydrocarbons Mohamed Arkab met his Azerbaijani counterpart, Energy Minister Parviz Shahbazov, on the sidelines of the 28th ministerial meeting of the Gas Exporting Countries Forum (GECF), Maghreb Emergent said. Algérie Presse Service had announced Arkab's trip to the Moscow meeting the day before.

The ministers reviewed investment and partnership opportunities between Sonatrach and SOCAR in well services, oil and gas field development, hydrocarbon transport, and refining and petrochemicals, Radio Algérienne reported. They also discussed preparations for the next session of the Algerian-Azerbaijani joint intergovernmental commission, and oil and gas markets within OPEC, OPEC+ and the GECF.

What is on offer

ALNAFT launched the round, its second hydrocarbons bid round, on 19 April 2026, according to a King & Spalding briefing. The seven perimeters cover about 49,000 square kilometres in the Illizi, Oued Mya, Berkine, Benoud Trough and Amguid-Berkine basins, under Algeria's 2019 hydrocarbons law. Six are offered under production sharing contracts and one, Est Bordj Omar Driss I, under a participation contract. The largest, El Benoud Est, covers 14,213 square kilometres.

The published timetable set bid submission for 26 November 2026 and contract signing for 31 January 2027. Maghreb Emergent reported that Arkab has since announced offers in January 2027 and contracts in March 2027. More than 50 companies expressed interest before the summer, the outlet said, and the 2024 round prequalified 20 international companies and led to five licences.

An existing link through Italy

The most concrete commercial tie so far is downstream. In May, SOCAR received authorisation to supply Azeri Light crude on a long-term basis to Sonatrach Raffineria Italiana, owner of the Augusta refinery in Italy, under a memorandum ratified by presidential decree, according to Maghreb Emergent. The Sonatrach and SOCAR file was on the agenda of ministerial meetings in April and early September.

CBJ has followed SOCAR's push into Africa, the Gulf and Israel as the company widens its foreign portfolio, and reported this month that Azerbaijan's crude exports earned $10.1bn in nine months as volumes fell.

What it means for business

For SOCAR, Algerian acreage would add onshore exploration outside the Caspian while export volumes at home are falling. For Algeria, which produced 995,000 barrels per day in July according to OPEC figures cited by Maghreb Emergent, against an OPEC+ ceiling of 1.007 million, the round is a way to bring in new partners and capital for exploration.

The invitation commits neither side. None of the reports says whether any Azerbaijani company intends to bid, and the revised dates leave about two months between offers and contracts.

What to watch

• Whether SOCAR registers for the round before bids are due.
• The date of the next Algerian-Azerbaijani intergovernmental commission.
• Confirmation by ALNAFT of the revised bid and signing dates.

Sources: Radio Algérienne, via Upgrowth, 26 October 2026; Maghreb Emergent, 26 October 2026; Algérie Presse Service, 25 October 2026; King & Spalding, 28 April 2026.