Why did Algeria nationalize international oil companies in 1971?

In 1971, Algeria nationalized international oil companies as part of a broader strategy to establish a centrally planned economy under a state socialist system. Following its independence, the government sought to exert complete control over the country's natural resources to facilitate rapid industrialization.12

By nationalizing these assets and transferring control to the state-owned corporation Sonatrach, the Algerian government aimed to capture the vast revenues derived from oil and gas sales. These funds were intended to finance an ambitious national industrialization program, which was a central pillar of the regime's economic policy under Houari Boumedienne. This move was consistent with the government's efforts to reduce reliance on foreign interests and consolidate state authority over the nation's primary economic drivers.21