Chinese Energy Giant Defeats TotalEnergies in Major Algerian Gas Block Victory
In a stunning upset that has sent shockwaves through the global energy sector, China’s Zhongman Petroleum and Natural Gas Group (ZPEC) has outbid industry heavyweight TotalEnergies to secure exploration rights for Algeria’s massive Zerafa II gas block. The Shanghai-listed independent also triumphed over a powerful consortium comprising Italy’s ENI and Norway’s Equinor in what industry insiders are calling one of the year’s most significant tender battles.
The Zerafa II block, spanning an enormous 38,697.73 square kilometers in central Algeria, sits strategically in the southern reaches of the country’s prolific Gourara-Timimoun gas basin – one of Algeria’s most promising hydrocarbon regions. The victory marks ZPEC’s first hydrocarbon exploration venture in Africa, representing a major expansion of Chinese energy influence on the continent.
Algeria’s National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) awarded the production sharing contract to ZPEC following what sources describe as an intensely competitive bidding process. While investment values remain undisclosed and the final contract awaits signing, the win signals China’s growing appetite for African energy assets.
ZPEC, one of China’s premier independent oil and gas companies, currently operates in China’s Xinjiang region and Kazakhstan, with recent expansion into Iraq. The Algerian acquisition represents the company’s most ambitious international venture to date, potentially opening doors for further Chinese investment across North Africa’s energy sector.
The defeat of TotalEnergies – a traditional powerhouse in North African energy markets – underscores the shifting dynamics of global energy competition, with Chinese companies increasingly challenging Western dominance in strategic resource regions.
Source: energy.economictimes.indiatimes.com
