Faith Nyasuguta
Algeria is taking decisive steps to strengthen its energy partnership with the United States, aligning economic strategy with growing diplomatic stakes as tensions over the Western Sahara dispute escalate. The North African nation is positioning itself as a key energy partner while using economic diplomacy to reinforce its regional influence.
On June 24, Algeria’s Ministry of Foreign Affairs Secretary-General, Lounes Magramane, met with U.S. Ambassador Elizabeth Moore Aubin in Algiers to review regional developments and bilateral cooperation. Both sides reaffirmed their commitment to expand ties, with Ambassador Aubin later highlighting the “important discussions” on her social media platforms.
This renewed engagement comes as the Trump administration shows signs of re-engaging with the stalled Western Sahara negotiations. Reports suggest Washington is weighing efforts to revive talks ahead of a crucial UN Security Council session in October. The region’s status remains deeply contested: Morocco insists Western Sahara should remain under its sovereignty with autonomy, a plan first proposed in 2007, while Algeria backs the Polisario Front’s demand for a UN-backed referendum on independence.
The Trump administration’s decision to recognize Morocco’s claim in exchange for Rabat’s normalization of ties with Israel remains a diplomatic flashpoint, pushing Algeria to fortify both its alliances and its economic leverage.
In parallel with its diplomatic maneuvers, Algeria is unlocking new investment opportunities for American energy giants. President Abdelmadjid Tebboune recently hosted senior executives from Chevron and ExxonMobil alongside Energy Minister Mohamed Arkab and Sonatrach CEO Rachid Hachichi. These meetings signal Algeria’s readiness to welcome substantial foreign capital into its vital oil and gas sector.
A key part of this push is a proposed energy law that would allow foreign companies to own up to 80% of new hydrocarbon projects – a major shift from Algeria’s historically restrictive policies. Minister Arkab has called the draft legislation “transformative,” promising to modernize the energy sector while safeguarding national resources.
Earlier this year, Algeria’s Ambassador to Washington, Sabri Boukadoum, described the renewed partnership as boundless, stating, “The sky’s the limit.”
As the Western Sahara dispute remains unresolved, Algeria’s deepening energy ties with the U.S are seen as both an economic opportunity and a strategic counterweight to Morocco’s Western-backed autonomy plan – underlining how energy and diplomacy remain tightly intertwined in North Africa’s shifting geopolitics.
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