Zhongman Petroleum and Natural Gas Group, a Chinese energy firm, has secured a contract to explore and develop the Zerafa II natural gas block in Algeria. The award, granted under a production sharing agreement, marks the company’s first hydrocarbon venture in Africa.

The contract was issued by Algeria’s National Agency for the Valorization of Hydrocarbon Resources. Zhongman Petroleum prevailed over global competitors, including France’s TotalEnergies and a consortium of Italy’s ENI and Norway’s Equinor.

The Zerafa II block spans approximately 38,698 square kilometers and is located in Algeria’s Gourara-Timimoun basin, a region known for its natural gas reserves.

Zhongman Petroleum, listed on the Shanghai Stock Exchange, is among a small group of independent Chinese oil and gas companies. Its operations currently include projects in China’s Xinjiang region and Kazakhstan. In 2024, the company also secured exploration rights in Iraq.

While the investment value of the Algerian project has not been disclosed, the final agreement has yet to be signed. The company announced the contract win through its official WeChat channel on Wednesday.

Growing Presence in Global Energy Markets

This latest development underscores Zhongman Petroleum’s strategic push to diversify its international portfolio. Securing the Zerafa II block represents a significant milestone in the company’s broader expansion into resource-rich regions outside Asia.

Further details on project timelines and development plans are expected following the formal signing of the contract.

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