Arab News
Arab news,
Wed, Oct 15, 2025 | Rabi al-Thani 23, 1447
Saudi Midad Energy, Algeria’s Sonatrach ink $5.4bn hydrocarbon deal
Saudi Arabia:
Saudi Arabia’s Midad Energy North Africa signed a
$5.4 billion production-sharing contract with Algeria’s Sonatrach to explore and
develop hydrocarbons in the Illizi Basin.
The agreement was signed in Algiers in the
presence of Saudi Ambassador Abdullah bin Nasser Al-Busairi and Algerian
Minister of Energy and Mines Mohamed Arkab, the Saudi Press Agency reported.
Under the deal, Midad Energy will fully finance
the project, including $288 million earmarked for exploration. The contract runs
for 30 years, with an option to extend for an additional 10 years, and includes
a seven-year exploration phase.
The partnership, one of Saudi Arabia’s largest
private energy investments in North Africa, aims to boost Algeria’s upstream
production and strengthen energy cooperation between the two OPEC member
states.
“By the end of the contractual period, total
production is expected to reach about 993 million barrels of oil equivalent,
including 125 billion cubic meters of natural gas,” SPA reported.
The deal supports Algeria’s efforts to reinforce
its position as a key energy supplier to global markets while meeting domestic
demand and advancing a transition toward more sustainable sources.