Algeria’s Sonatrach and Saudi oil and gas investor and operator Midad Energy North Africa have signed a USD 5.4-billion hydrocarbons production-sharing contract for the Illizi South perimeter, Sonatrach announced on Monday.
The contract has a duration of 30 years with a possible 10-year extension, and includes a seven-year research phase. By the end of the contract period, the Illizi South perimeter is expected to yield 993 million boe, including 125 bcm (4.41 tcf) of gas and 204 million barrels of liquids such as LPG and condensate. Illizi South is located approximately 100 kilometres south of the Algerian town of In Amenas, close to the border with Libya.
Midad Energy will fully finance the exploration and development of the area. Total investments are estimated to reach USD 5.4 billion, including around USD 288 million for research. The development will prioritise local content and domestic subcontractors.
The signing follows a protocol of agreement concluded between the two companies in March 2024.
Sonatrach has signed agreements with several international energy companies in 2025 for the development of Algerian oil and gas resources. They include exploration licenses awarded to TotalEnergies and QatarEnergy, a USD 1.35-billion deal with Eni for the Zemoul El Kbar area and a USD 850-million deal with Sinopec for the Hassi Berkane North perimeter.
Riyadh-based Midad Energy focuses on upstream opportunities across the North African region. Its activities span oil and gas exploration and field development partnerships.
Source: Theenergyyear.com