Algeria is advancing its local resource processing strategy as Sonatrach narrows down its selection of partners for two key industrial hubs: base oil production in Arzew and ethylene manufacturing in Skikda. Four international groups, namely China HuanQiu (China), Enppi (Egypt), Tecnicas Reunidas (Spain), and Wood (UK), have been qualified to bid for engineering, technology licensing, and project management services. These projects are central to the 2025-2029 petrochemical development program, which carries a $7 billion investment budget. The ultimate goal of this expansion is to increase the local hydrocarbon transformation rate from 32% to 50%, effectively reducing dependence on imports and bolstering the domestic supply chain for industrial lubricants and plastics.