Algeria’s Sonatrach Secures Chinese Drilling Rigs to Expand Oil and Gas Output

The National Well Services Company (ENTP), a Sonatrach subsidiary specialized in drilling, signed a contract with China’s Kerui Petroleum to supply several drilling rigs. The deal is valued at more than 750 million yuan, or about $103 million.

According to an April 30 statement by Kerui, the equipment will be deployed across multiple sites based on operational needs. The number of rigs and delivery schedule have not been disclosed.

The agreement follows a competitive tender and extends an existing partnership between the two companies. In 2014, Sonatrach selected Kerui to supply four drilling rigs to ENTP, choosing the Chinese supplier over American and European competitors.

A Contract Backing Plans to Double Production

The contract is part of Sonatrach’s 2026–2030 investment plan, which totals $60 billion. About 75% of that amount is allocated to exploration and production.

Company chief Noureddine Daoudi said earlier this year that exploration and production represent the largest share of the group’s development spending over the period.

The plan includes the drilling of 500 exploration wells and 950 development wells over five years, along with 6,300 operations on existing wells. Algeria aims to raise gas output to 200 billion cubic meters per year by 2030, up from about 130 billion currently.

In 2024, Sonatrach’s primary production reached 193.7 million tons of oil equivalent, broadly stable compared with 2023, according to its annual report published in December 2025.

The government has also launched a new licensing round. On April 19, Energy Minister Mohamed Arkab announced the Algeria Bid Round 2026, offering seven exploration blocks to international investors.

Abdel-Latif Boureima
Source: ecofinagency