Sonatrach, Algeria's state-owned oil and gas company, has released its 2025 annual report, highlighting a slight increase in hydrocarbon production, a small decline in exports, and a significant rise in investments. Despite a challenging international energy market, Sonatrach demonstrated resilience and adaptability, achieving performances that reflect the solidity of its fundamentals. The company's primary production reached 193.7 million tons of oil equivalent (TEP) in 2025.
The production breakdown includes 47.5 million tons of oil, 134.3 billion cubic meters of natural gas, 8.3 million tons of condensate, and 7 million tons of liquefied petroleum gas (LPG). This represents a slight increase compared to 2024. However, the company's export volume decreased by 3% to 89 million TEP. Sonatrach's CEO, Noureddine Daoudi, emphasized the company's ability to adapt and develop its activities despite the challenging environment.
Sonatrach made significant progress in reducing gas flaring, with a 31% decrease over five years, reaching 2.61 billion cubic meters in 2025. The company continued to implement its development plan, investing heavily in exploration and production. A total of 1,078 billion Algerian dinars (approximately $7.9 billion USD) was invested in 2025, a 29% increase from 2024. Sixty-nine percent of these investments were allocated to exploration and production activities.
The investments were primarily focused on projects such as Touggourt, Tinrhert, Rhourde Chegga, TFT Sud, and Rhourde El Baguel, as well as production maintenance projects like the Boosting Hassi R'Mel phase III, step 2. Sonatrach also pursued major projects in refining and petrochemicals, including new units for Methyl Tert-Butyl Ether (MTBE) in Arzew and Linear Alkyl Benzene (LAB) in Skikda.
The company's refining sector saw the launch of a new hydrotreating and reforming unit at the Arzew refinery, with a capacity to process 780,000 tons of heavy naphtha per year. This unit is expected to increase annual gasoline production from 550,000 tons to 1.2 million tons. Despite these developments, Sonatrach's overall refining production decreased by 1% to 30 million tons in 2025.
However, the company's import bill for petroleum products surged, with imports reaching 1.4 million tons, a 572% increase from 2024. This rise was largely due to the importation of 1.07 million tons of diesel and a 42% increase in MTBE imports. Sonatrach's export revenue stood at 5,230 billion Algerian dinars (approximately $38.53 billion USD), while its overall revenue was 5,748 billion Algerian dinars (approximately $42.34 billion USD).
The company's net profit was 603 billion Algerian dinars (approximately $4.44 billion USD), representing a 26% decrease from 2024. This decline was attributed to the drop in crude oil prices, from $81.87 per barrel in 2024 to $69.37 per barrel in 2025, as well as an 8% decrease in the average price of natural gas.
Key points
- Sonatrach's investments increased by 29% in 2025, reaching $7.9 billion USD.
- The company's net profit decreased by 26% in 2025, due to lower crude oil and natural gas prices.
- Sonatrach's hydrocarbon production increased slightly in 2025, while its export volume decreased by 3%.
