Shanghai-listed Chinese oil and gas company Zhongman Petroleum and Natural Gas Group (ZPEC) has won a license to explore the Zerafa II natural gas block in central Algeria, the company announced.
The contract was awarded by Algeria’s National Agency for the Valorization of Hydrocarbon Resources (ALNAFT). ZPEC secured the Zerafa II block following a competitive bidding process that included major European firms such as French supermajor TotalEnergies and a consortium formed by Italian Eni and Norway’s Equinor, Reuters reported.
Located in the southern sector of Algeria’s primary gas-producing Gourara-Timimoun basin, the Zerafa II block represents a significant opportunity for ZPEC’s expansion in North Africa.
In a parallel development during the same licensing round—the first under Algeria’s new hydrocarbons law enacted in December 2019—TotalEnergies and QatarEnergy were awarded the Ahara oil and gas block. The Ahara license covers nearly 14,900 square kilometers at the intersection of the Berkine and Illizi basins, marking a strategic foothold for both companies in the region.
TotalEnergies and QatarEnergy will jointly operate the Ahara block during the exploration and appraisal phases, each holding a 24.5% stake. The majority share of 51% belongs to Algeria’s state oil company, Sonatrach, in accordance with national regulations.
QatarEnergy’s President and CEO, Saad Sherida Al-Kaabi, expressed enthusiasm about the deal, stating, “We are delighted to be awarded the Ahara Block, which marks our first entry into Algeria’s upstream sector and further expands our footprint in Africa.”
Algeria, a founding member of OPEC since 1969, currently produces approximately 900,000 barrels per day of crude oil. The North African nation participates in the OPEC+ agreement aimed at regulating oil supply.
In recent months, Algeria has intensified efforts to capitalize on its natural gas reserves, particularly to meet growing European demand following the reduction of Russian pipeline gas supplies since 2022.
