Algeria Opens Oil and Gas Investment to Indonesian Private Sector, Encourages Pertamina's Expansion

Algeria has opened investment opportunities in its oil and gas sector not only to Indonesia's state-owned energy company Pertamina but also to private companies. The North African nation is inviting more national energy companies to participate in the 2027 oil and gas work area auction. The offer was conveyed during a meeting between the Indonesian Ambassador to Algeria, Yusron Bahauddin Ambary, and Algeria's Minister of State and Minister of Hydrocarbons, Mohamed Arkab, along with the President of the Algerian Hydrocarbon Resources Management Agency (ALNAFT), Abdelkader Cherfaoui. According to an official statement from the Indonesian Embassy in Algiers, Arkab and Cherfaoui referred to Indonesia as a strategic partner in the energy sector. Both officials appreciated Pertamina's performance and encouraged the company to expand its operations in Algeria. Arkab specifically welcomed Pertamina's participation in the Algeria Bidding Round 2026 and expressed hope for greater involvement from Indonesian energy companies, including private ones, in the 2027 auction. To follow up on this offer, ALNAFT has proposed a special meeting with Indonesian energy companies to discuss the potential of Algeria's oil and gas fields, investment opportunities, and the applicable regulations. These meetings can be held in person or via online seminar. Arkab also extended an invitation to Indonesia's Minister of Energy and Mineral Resources, state-owned enterprises, and energy companies to directly review the potential of oil and gas fields and other energy sources in Algeria. This visit could serve as a follow-up to the Memorandum of Understanding (MoU) on Indonesian-Algerian energy cooperation signed in Algiers in December 2023. The two countries also discussed the proposal to establish a Joint Commission in Hydrocarbons, a joint forum aimed at strengthening coordination and encouraging the implementation of oil and gas cooperation. The scope of cooperation between the two nations extends beyond the oil and gas sector. Algeria also possesses strategic phosphate projects in Bled El Hadba and Bir El Ater, Tebessa Province. Algeria's total national phosphate reserves are estimated at 2.2 billion tons, with phosphate being a key raw material for fertilizers crucial to the agricultural sector. The meeting with Arkab and Cherfaoui is a continuation of the energy diplomacy efforts by the Indonesian Embassy in Algiers. Previously, Ambassador Yusron met with the CEO of Algeria's national energy company, Sonatrach, on September 9, 2026. Ambassador Yusron stated that the investment invitation from Minister Arkab aligns with the message from the Algerian President during the presentation of his credentials as Indonesian Ambassador. He highlighted that expanding cooperation opens avenues for Indonesia to enhance its access to strategic resources, support energy and food security, and foster investment by national companies in North Africa. "Interstate relations are not only about building trust, but also about opening up opportunities, expanding markets, creating jobs, and bringing benefits to the people of both nations," Yusron said when contacted via mobile phone on Tuesday, September 22. He further added, "Diplomacy builds bridges, economic cooperation brings benefits on top of it."