In a significant development for the global energy sector, Zhongman Petroleum and Natural Gas Group (ZPEC), a Shanghai-listed Chinese oil and gas company, has won a key natural gas exploration license in Algeria. The Zerafa II gas block, located in the Gourara-Timimoun basin, was awarded to ZPEC by ALNAFT — Algeria’s National Agency for the Valorization of Hydrocarbon Resources.
ZPEC Triumphs Over Global Majors in Competitive Bid
ZPEC secured the block in competition with major global players, including:
- TotalEnergies (France)
- A consortium of Eni (Italy) and Equinor (Norway)
This win signals China’s growing upstream footprint in North Africa and highlights Algeria’s openness to diversifying partnerships in the energy sector.
About the Zerafa II Block
- Location: Southern region of the Gourara-Timimoun basin
- Resource Type: Natural gas
- Awarded To: ZPEC (China)
- Licensing Agency: ALNAFT, under Algeria’s new hydrocarbons law (2019)
The block sits in one of Algeria’s key gas-producing regions, which plays a crucial role in supplying European energy markets.
TotalEnergies and QatarEnergy Win Ahara Block in the Same Round
In the same licensing round, TotalEnergies and QatarEnergy secured the Ahara oil and gas block, marking QatarEnergy’s first upstream venture in Algeria.
- Ahara Block Size: 14,900 km²
- Location: Between the Berkine and Illizi basins
- Stake Distribution:
- Sonatrach (Algeria): 51%
- TotalEnergies: 24.5%
- QatarEnergy: 24.5%
“This award marks our first entry into Algeria’s upstream sector and expands our footprint in Africa,” said Saad Sherida Al-Kaabi, CEO of QatarEnergy.
Algeria’s Energy Ambitions: Natural Gas as a Strategic Export
Algeria, a longstanding OPEC member since 1969, currently produces around 900,000 barrels per day (bpd) of crude oil. However, its focus in recent years has shifted toward monetizing its vast natural gas reserves — particularly as European nations look to reduce dependence on Russian pipeline gas post-2022.
This gas block licensing round is Algeria’s first under a revised hydrocarbons law (2019), which offers improved fiscal terms and aims to attract greater foreign investment.
Industry Significance & Outlook
The success of ZPEC in Algeria demonstrates China’s ongoing efforts to secure energy partnerships in strategic regions, while the Ahara block deal reaffirms the growing role of Middle Eastern energy giants in Africa.
Both deals also showcase Algeria’s rising importance in global energy security, particularly for gas-starved European markets.
