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The energy and mining sector recorded positive results during the first nine months of 2025, despite a global context marked by significant economic and geopolitical fluctuations that affected energy markets. This was indicated by the Minister of State, Minister of Hydrocarbons and Mines, Mohamed Arkab, during the presentation of the sectoral budget of his department for the year 2026, before the finance and budget committee of the National People’s Assembly (APN).
According to the minister, marketed production stood at 128 million tonnes of oil equivalent at the end of September 2025, generating $31 billion in export revenues and oil taxes estimated at 2,834 billion dinars, or 82% of the forecasts included in the 2025 finance law. At the same time, national consumption of petroleum products continued to increase, reaching nearly 15 million tonnes, due to the increase in demand for diesel, gasoline and LPG.
The minister also explained that the budget review takes place in an international context marked by economic and geopolitical fluctuations having impacted energy markets. Algerian crude oil prices fell by 15%, stabilizing at $71 per barrel during the first nine months of 2025, compared to $84 in the same period of the previous year, while gas prices fell by 1.1%.
In the mining sector, production has seen a clear increase, particularly in iron, calcium carbonate, barite, dolomite and feldspar, thanks to the entry into service of new factories in Constantine, Mascara, Annaba and Tlemcen. The local market was largely supplied, while 900,000 tonnes of phosphate were exported for a value exceeding $80 million in the first half of 2025. Overall investments in the sector reached $5 billion in the first nine months of the year, while 200,000 workers are employed there, representing 9,000 additional jobs compared to 2024.
Arkab stressed that the performances achieved are the result of own efforts deployed in the areas of exploration, production and processing. The Sonatrach Group notably carried out, during the first nine months of 2025, more than 7,800 km of 2D seismic prospecting, 7,700 km² of 3D prospecting and 466,000 meters of drilling, resulting in 13 new hydrocarbon discoveries, entirely carried out through its own efforts, by national means.
Forecasts for 2026
As part of the 2026 finance bill, Mr. Arkab indicated that the overall sectoral budget amounts to 129 billion dinars, distributed among several priorities. This concerns an amount of 62.8 billion dinars for the connection of the Gara Djebilet project to electricity and gas, 63.2 billion dinars for the seawater desalination program, 1.7 billion dinars for mining research, and 1.08 billion dinars for the administrative management of the sector.
The forecast oil tax is estimated at 2,698 billion dinars, calculated on the basis of a reference price of 60 dollars per barrel. The minister stressed that this programming is part of an approach to consolidate achievements and strengthen the country’s energy and water security.
For the coming year, primary production of hydrocarbons is expected to increase by 2% to reach 193 million tonnes of oil equivalent, supported by the ramp-up in crude oil and gas production. Several strategic projects are underway, including the new Hassi Messaoud refinery (capacity of 5 million tonnes/year), the fuel oil cracking unit in Skikda, and the naphtha conversion project in Arzew.
In the petrochemical sector, polypropylene and linear alkylbenzene (LAB) production projects show a progress rate of 40%. Furthermore, five new hydrocarbon contracts were signed as part of “Algeria Bid Round 2025”, in addition to three production sharing contracts with SINOPEC (China), ENI (Italy) and MIDAD (Saudi Arabia), for a total amount exceeding $7 billion.
The mining sector continues the implementation of its structuring projects, in particular the iron deposit of Gara Djebilet, in the implementation phase with a capacity of 4 million tonnes/year, the zinc and lead project of Oued Amizour – Tala Hamza (Béjaïa), and the integrated phosphate project of Tébessa and Souk Ahras, which should produce 6.6 million tonnes of fertilizer and urea from 2027.
On the environmental front, the ministry plans to reduce methane emissions to less than 1% by 2030, thanks to an investment of more than a billion dollars in a 520,000 hectare reforestation and carbon storage program. A study is also underway for the production of sustainable aviation fuels (SAF).
As part of water security, the sector currently manages 19 desalination stations with a capacity of 3.8 million m³/day, covering 42% of the national demand for drinking water. Three new stations will be built in Chlef, Mostaganem and Tlemcen, to increase this coverage to 60% by 2030.
In addition, the minister discussed administrative modernization through the development of the Tassareeh and Markabti DZ digital platforms, intended to simplify procedures and strengthen cybersecurity, in partnership with the Ministry of National Defense. In this regard, Mr. Arkab affirmed that these indicators demonstrate the strategic vision of the State, based on economic diversification, the development of natural resources and the transition towards sustainable and inclusive development.