Algeria hydrocarbons: reserves, production and risks for the Algerian economy
Algeria holds large proved oil and gas stocks, but falling output and rising domestic gas use are reshaping revenues and the Algerian economy.
Algeria still ranks among Africa’s top holders of proved oil and gas, but recent data show production slipping and a growing share of gas kept for the domestic market. This matters for the Algerian economy because export volumes and long-term export revenue depend on both output levels and how much fuel is retained at home, according to Algerie360, which cites OPEP and national figures.
What happened
Authorities and industry data compiled by Algerie360 report that at the end of 2025 Algeria had 12. 2 billion barrels of proved crude oil and 4,504 billion cubic metres of proved natural gas, figures unchanged since 2021 and drawn from OPEP statistics. Production in 2025 delivered 193. 7 million tonnes of oil‑equivalent hydrocarbons in total, with gas representing 66% of that output and crude oil 24%.
At the same time gas production fell for the third consecutive year to 101. 84 billion cubic metres in 2025, down from 104. 5 billion the year before. Domestic gas sales rose to 57. 3 billion cubic metres in 2025, an increase of 7. 8%, so more than half of production now stays in Algeria rather than going to export markets, Algerie360 reports.
Background and how we got here
Proved reserves are the volumes that can be extracted with strong certainty under current technical and economic conditions; they exclude uncertain or undiscovered resources. Algeria’s 12. 2 billion barrels place it third in Africa behind Libya and Nigeria, and the 4,504 billion cubic metres of gas place it second on the continent, according to Algerie360 citing OPEP and the Organisation of Arab Petroleum Exporting Countries.
The country’s state energy company Sonatrach and its partners produced 47. 5 million tonnes of crude oil in 2025, plus 8. 3 million tonnes of condensate and 8. 7 million tonnes of LPG. Sonatrach has announced new discoveries—17 in 2025 and 17 more since the start of 2026—and has increased investment, with spending above $6 billion in 2026 versus $5. 3 billion in 2025.
The figures in context: what this means for the Algerian economy
Dividing proved reserves by current production gives a simple, theoretical horizon: Algerie360 reports that the country’s oil reserves would last about 35 years at 2025 production rates, using the article’s calculation that annual oil output corresponds to roughly 348 million barrels. For gas the horizon depends on which reserve estimate is used: with the 4,504 billion cubic metres figure the article reports about 44 years, while a more cautious external estimate of 2,300–2,500 billion cubic metres would imply about 25 years.
Those durations are theoretical: they assume steady production and do not account for rising domestic consumption, new discoveries, or improved recovery techniques. The shift toward gas and the rise in domestic gas sales mean that exportable volumes can fall even if proved reserves remain large, which affects export revenues and public finances over time.
What it means for households, the diaspora and businesses
For households the immediate practical effect is indirect: a larger share of gas sold at home has helped the domestic electricity and industrial sectors meet rising demand, but the source does not quantify direct price or subsidy changes. Algerie360 notes the domestic market consumed 57. 3 billion cubic metres in 2025, up 7. 8%, reflecting stronger internal demand for power and industry.
For businesses and potential foreign investors, the numbers signal two things. First, the industry in Algeria is pivoting toward gas, and companies tied to power generation, petrochemicals or local gas supply may face growing domestic opportunities. Second, reduced export volumes over time can tighten hard‑currency receipts for the state; Sonatrach’s larger exploration and development programme—plans to drill about 500 exploration wells and some 950 development wells under a 2026–2030 plan—aims to slow any decline but does not guarantee exports will stabilise. Those considering investing in Algeria should therefore track output, domestic demand trends and Sonatrach’s results; the article does not provide project‑level investment details.
What is still unknown
Key uncertainties remain about how quickly declining production and rising domestic consumption will translate into lower export receipts. Algerie360 reports the reserve and production figures and describes Sonatrach’s exploration plans, but it does not quantify future export revenues or the fiscal gap that could emerge if exports shrink.
Other unknowns include how much of the volumes in place from recent discoveries are ultimately recoverable. Algerie360 notes Sonatrach reported 84. 6 million tonnes of hydrocarbons in place from its 2025 discoveries (68% oil), but it underlines that ‘‘in place’’ volumes are not equal to recoverable reserves. The effect of improved recovery methods and new discoveries on long‑term output therefore remains to be seen.
What to watch next
Watch Sonatrach’s drilling and discovery results under its 2026–2030 plan, which aims to cover 66% of the national mining domain with roughly 500 exploration wells and allocate 75% of development investments to exploration and production—these outputs will indicate whether new finds can offset declines at mature fields. Algerie360 reports those programme figures and the broader investment rise to over $6 billion in 2026.
Also follow annual gas production and domestic sales statistics: if domestic sales continue to grow faster than total production, exportable volumes are likely to shrink. Finally, monitor reporting on the recoverability of recent discoveries and on the implementation of secondary recovery techniques, because small gains in recovery rates can materially extend field life, a point highlighted by Algerie360.
Questions and answers
How long will Algeria’s oil reserves last at current rates?
According to Algerie360’s reading of OPEP data and production in 2025, proved oil reserves of 12. 2 billion barrels correspond to about 35 years of production at 2025 output levels.
How many years of gas remain in Algeria?
Using the OPEP figure of 4,504 billion cubic metres, Algerie360 reports a theoretical horizon of about 44 years; with more conservative external estimates of 2,300–2,500 billion cubic metres the horizon falls closer to 25 years.
Is Algeria producing more gas for itself than before?
Yes. Algerie360 reports that domestic gas sales reached 57. 3 billion cubic metres in 2025, up 7. 8%, meaning the domestic market now absorbs more than half of national gas production.
What is Sonatrach doing to slow declines in production?
Algerie360 describes Sonatrach’s expanded programme: in 2026–2030 it plans roughly 500 exploration wells, about 950 development wells and nearly 6,300 operations on existing wells, and it increased investment above $6 billion in 2026 to support exploration and recovery efforts.
Should I expect immediate changes to fuel prices or car import rules?
The article by Algerie360 provides production, reserve and investment data but does not report direct changes to retail fuel prices or to car import policies; any such policy changes are not covered and therefore not yet known from these sources.
Sources
This explainer summarises reporting from the outlets below. Read the originals for full details.
Written with AI assistance from the sources listed and ExchangeDZ market data, then checked for accuracy and originality. Not financial advice.