Ouargla Province
Ouargla birthed Algeria's oil economy in 1956 at Hassi Messaoud (8 billion barrels). A $3.68 billion refinery under construction will triple southern refining by 2027.
Ouargla Province is where Algeria's oil economy was born. In 1956, exploration teams struck petroleum at Hassi Messaoud, transforming a Saharan oasis 600 km southeast of Algiers into the country's first energy town. The field holds an estimated 8 billion barrels—the reservoir that funds Algeria's budget, generates 90% of export revenue, and shapes every political decision made in the capital.
The province has matured from frontier exploration to industrial complex. Sonatrach, the national oil company, operates the original Hassi Messaoud refinery (30,000 bpd) while constructing a new $3.68 billion facility due online in 2027 with 110,000 bpd capacity. The Berkine basin, 300 km from Hassi Messaoud, hosts a $1.35 billion Sonatrach-Eni joint venture. In October 2024, Baker Hughes opened an equipment and training center to support deep gas development—international capital clustering around the resource.
This is path dependence in its purest form: decisions made in 1956 still determine where roads are built, where workers are trained, where billions are invested. By 2026, the new Hassi Messaoud refinery will increase Algeria's domestic refining capacity by a third, reducing fuel imports. But the province's fate remains tied to global oil demand—the same concentration that creates wealth creates vulnerability.