North African hydrocarbon producers turn to mature fields as Europe seeks new supplies

North African oil and gas producers are investing in mature assets to lift output and respond to changing European demand, the African Energy Chamber (AEC) said in a media release ahead of African Energy Week (AEW) 2026 in Cape Town scheduled for October 12-16.

European buyers have been diversifying their supplier base since 2022, placing greater emphasis on energy security. According to the AEC, North Africa is well positioned to benefit from this emerging energy market shift because of its existing pipelines to southern Europe and established oil and gas infrastructure.

A panel titled “North Africa’s Onshore and Brownfield Expansion: Focus on Algeria, Egypt, Libya” at AEW 2026 will examine how the three countries can turn brownfield investment into additional production and supply.

In Algeria, state-owned oil and gas company Sonatrach is planning $60bn of spending for 2026-2030, said the chamber, with a large share aimed at sustaining production from Hassi R'Mel and Hassi Messaoud giant legacy fields. The $2.3bn Hassi R'Mel Phase III production boosting project is focused on compression and recovery at the field, which has been producing for more than 65 years.

Algeria accounted for about 18% of EU pipeline gas imports in 2025, according to the Institute for Energy Economics and Financial Analysis (IEEFA). Sonatrach is also discussing an expansion of the Medgaz pipeline to Spain that could add up to 1bn cubic metres (bcm) a year.

Egypt is taking a more drilling-focused approach. The petroleum ministry plans 101 wells in 2026, including 67 in the Western Desert, after settling $5bn in overdue payments to international oil companies (IOCs) in late 2025. Twenty-one new agreements worth $1.1bn followed, said the AEC.

In May, Agiba Petroleum, a joint venture between the Egyptian General Petroleum Corporation (EGPC) and Italy’s integrated energy firm Eni (BIT:ENI/NYSE:E), announced a new discovery with estimated reserves of 70mn barrels of oil equivalent (boe). The chamber described it as the largest in the Western Desert in 15 years.

Libya is also seeking to raise output from mature assets. Production reached 1.4mn barrels per day (bpd) in early 2026, with the National Oil Corporation (NOC) targeting 1.6mn bpd by year-end.

In January, Waha Oil, a subsidiary of Libya’s state-run NOC, signed a $20bn, 25-year development deal with energy giants TotalEnergies (EPA:TTE/NYSE:TTE) and ConocoPhillips (NYSE:COP) aimed at more than doubling the venture’s production to 850,000 bpd. Brownfield programmes are also advancing at Sarir, Messla and Al-Atshan oilfields.

“The investment case for brownfield expansion in North Africa has never been stronger,” said AEC’s executive chairman NJ Ayuk. “These countries have proven reserves, existing infrastructure and direct pipeline access into a European market that is actively looking for gas alternatives.”