Energy is Leverage
Following a previous post by Syrine Megherbi where she talked about the strong Algerian-Italian relation in the context of gas exportation, I wanted to highlight the interest shift currently occurring within global energy markets. Where energy has become a matter of socio-political strategy, and power increasingly lies in the hands of those who control the necessary resources.
The investment portfolios of major oil and gas companies are leaning toward opportunities in the African continent. We can note, for example, BP’s re-entry into Algeria through a new prospecting license after its exit in 2023, when it sold all of its shares in the In Salah and In Amenas gas projects to the Italian giant Eni, which itself holds multiple exploration and exploitation licenses within the country. In July 2025, it signed a $1.35 billion development contract cementing it position as a trust worthy partner of Sonatrach.
We can also note the recent discoveries within Libyan territory, particularly the 1 trillion m³ offshore discovery by Eni and NOC. Chevron and ExxonMobil are also companies to watch, as both are expanding their footprint into newer territories: Algerian unconventional resources, Angolan LNG and oil, and re-entering the Libyan market following the recent stabilization of the region.
In recent months, especially after the Iran conflict and the closure of the Strait of Hormuz, the world has come to understand the fragility of the current system. The sharp surge in fuel and consumer product prices affected many countries, forcing them to take drastic measures to reduce energy consumption while trying to preserve their reserves.
As a result, African countries have taken this as an opportunity to encourage foreign investment. Algeria, for example, launched “Algeria Bid Round 2026” through ALNAFT, in which seven fields were proposed. Major projects have also been announced in the region, notably the Trans-Saharan Gas Pipeline Project, in which Nigeria, Niger, and Algeria are partners. It will strengthen African exports to the European market through existing Euro-Algerian pipelines such as Enrico Mattei (Transmed) and Medgaz pipelines.
As energy enthusiasts, we need to keep an eye on these developments to better shape the future of energy, as the world is still heavily reliant on oil and gas, and the transition to renewables is far from trivial. Current infrastructure and electrical grids are not yet fully prepared to handle the immense load that such a transition would create. Moreover, the shift cannot happen instantly because of the enormous capital investment it requires.
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Energy is Leverage
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