Saudi Arabia's Midad Energy signs $5.4bn Algeria hydrocarbons deal

15/10/2025 02:34 AST

Algeria's Sonatrach and Saudi company Midad Energy North Africa have signed a production-sharing hydrocarbon contract for the exploration and exploitation of hydrocarbons on the contractual perimeter of Illizi South, located nearly 100 km south of In Amenas.

The investment under the contract is estimated at $5.4 billion, including $288 million allocated for exploration work, with Midad Energy financing 100% of the project.

Total production by the end of the contract term is expected to reach about 993 million barrels of oil equivalent, including 125 billion cubic meters of natural gas.

The contract was signed by Sonatrach Chairman and CEO Rachid Hachichi and the Chairman & CEO of Midad Energy North Africa, Sheikh Abdulelah bin Mohammed bin Abdullah Al-Aiban, in the presence of the Minister of State, Minister of Hydrocarbons and Mines, Mohamed Arkab, Ambassador of Saudi Arabia to Algeria, Dr Abdullah bin Nasser Abdullah Al-Busairi, and also the President of the Managing committee of the National Agency for the Valorization of Hydrocarbons Resources (ALNAFT) and the Chairman of the Hydrocarbon Regulatory Authority (ARH).

This contract overs a duration of 30 years, that can be extended for 10 additional years and provides for a research period of 7 years.

The programme relating to this hydrocarbon contract will be carried out according to the strict compliance to the environmental requirements of the regulation in force applicable in Algeria. This programme also includes the use of the latest technological and digital solutions, a statement said.

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