Entity

Sonatrach is Algeria's state-owned, fully integrated national oil and gas company, founded on December 31, 1963, and widely regarded as the largest company in Africa and the country's primary economic engine.

Overview & Structure

Sonatrach operates across the entire hydrocarbon value chain — from exploration and production to pipeline transport, liquefaction, refining, petrochemicals, and marketing. The company controls roughly 80% of hydrocarbon production in Algeria, with international oil companies (IOCs) accounting for the remaining 20%. It employs nearly 200,000 workers across its group and subsidiaries.

Exploration & Production

Sonatrach's E&P activity is its core business, covering Algeria's mining domain of approximately 1.5 million km² — still largely underexplored — with potential for both conventional and unconventional resources, including offshore. Key fields include Hassi Messaoud, Algeria's largest oil field producing around 440,000 bbl/d, and Hassi R'Mel, one of Africa's largest gas fields. In 2025, Sonatrach concluded eight new hydrocarbon contracts with major international partners under Algeria's Hydrocarbon Law 19-13.

Midstream & Transport

Sonatrach operates an extensive pipeline network spanning 21,190 km, distributed across 43 pipelines organized into 22 transport systems. The company also holds a 50% stake in the Transmed pipeline connecting Algeria to Italy via Tunisia, a critical gas export route to Europe.​

Refining & Petrochemicals

Sonatrach owns five crude oil refineries with a combined processing capacity of 27 million tons/year, plus a condensate unit of 5 million tons/year. Since 2020, its refining performance has been sufficient to fully cover domestic market demand, eliminating the need for product imports.​

Key Financials & Production

Strategy & Investment

Sonatrach unveiled a USD 60 billion five-year investment programme (2025–2030) focused on upgrading infrastructure, accelerating upstream exploration, and expanding downstream petrochemicals. The company is also pursuing energy transition goals including hydrogen production and low-carbon operations, with ambitions to join the H₂ South Corridor to supply hydrogen to Italy, Austria, and Germany. Recent international partnerships include an USD 850 million contract with Sinopec for hydrocarbon development in northern Algeria and an agreement with ExxonMobil to explore the Ahnet and Gourara basins.

References

1. Sonatrach (Jul 15, 2025). Presentation: SONATRACH, Africa’s Leading Hydrocarbons Group
2. Sonatrach (Jun 2025). Sonatrach an Integrated Oil & Gas Company
3. Sonatrach (Jun 16, 2025). Exploration and Production
4. Wikipedia. Sonatrach (Page version: Jan 31, 2026)
5. U.S. International Trade Administration (Jan 31, 2023). Algeria Country Commercial Guide —  Oil and Gas - Hydrocarbons
6. Fitch Solutions Group Ltd, UK (Oct 22, 2025). BMI Country Risk & Industry Research: Algeria Oil & Gas Profile: Sonatrach
7. Reuters (Feb 25, 2025). Algeria's Sonatrach, China's Sinopec sign $850 million contract for hydrocarbon development, exploration
8. Algeria Invest (Feb 25, 2026). Sonatrach outlines massive investment plan to boost exploration