Algeria signs $5.4B oil, gas exploration deal with Saudi’s Midad Energy
Agreement aims to boost Algeria’s hydrocarbon output and foreign investment in the Illizi Basin
ALGIERS, Algeria (MNTV) — Algeria’s state-owned energy giant Sonatrach has signed a $5.4 billion production-sharing agreement with Saudi Arabia’s Midad Energy to explore and develop oil and gas resources in the country’s southeastern Illizi Basin.
The 30-year contract, which includes a seven-year exploration phase and an optional 10-year extension, marks one of Algeria’s largest foreign energy partnerships in recent years.
Under the agreement, Midad Energy North Africa will fully finance the investment, allocating $288 million specifically for exploration operations near In Amenas, close to the Libyan border.
According to the Saudi Press Agency (SPA), total output over the lifetime of the contract is expected to reach approximately 993 million barrels of oil equivalent, including 125 billion cubic meters of natural gas. The agreement was first reported by Algeria’s Ennahar TV.
Sonatrach, the country’s leading oil and gas producer, has been actively expanding collaboration with international energy firms to modernize infrastructure and boost production capacity. The company recently signed an $850 million deal with China’s Sinopec for hydrocarbon exploration and development.
Algeria’s Energy Minister announced earlier this month that the government plans to invest $60 billion in the energy sector over the next five years, with a primary focus on upstream activities and enhanced production.
The North African nation, a member of OPEC, is seeking to strengthen its position as a reliable global energy supplier while also developing renewable and sustainable energy projects to meet growing domestic demand.
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