Algeria and Azerbaijan finalize strategic oil and gas partnership

Algeria ratified a strategic memorandum of understanding with Azerbaijan, signed on 29 November 2022, through a presidential decree issued on 12 May 2026. The five‑year agreement, automatically renewable in equal periods, sets a framework for deepened cooperation across the hydrocarbons sector, including upstream oil and gas exploration, petrochemical production, and the transport and marketing of petroleum products such as naphtha and LNG.

Azerbaijan’s state‑owned energy company SOCAR will supply long‑term deliveries of Azerbaijani light crude and other grades to Sonatrach’s refinery in Augusta, Sicily, which Algeria purchased from ExxonMobil. The deal also targets joint projects in renewable‑energy fields, notably hydrogen production and related infrastructure, as well as research, workforce training and possible green‑energy initiatives.

The agreement highlights the scale of the two countries’ energy output—Algeria produces roughly one million barrels of oil and over 100 billion m³ of gas per day, while Azerbaijan supplies about 600,000 barrels of oil and 50 billion m³ of gas. A joint working group will coordinate specific projects, reinforcing economic and industrial ties between the two nations.