The logo of the state energy company Sonatrach is pictured at the headquarters in Algiers, Algeria November 25, 2019.
Under the contract, Midad Energy North Africa will provide full financial support for the project, including $288 million earmarked for exploration activities. The project area, known as the Illizi South perimeter, is located about 100 kilometers south of the Algerian town of In Amenas, near the Libyan border. The agreement was initially reported by Ennahar TV.
According to the Saudi Press Agency (SPA), total production over the life of the contract is projected to reach approximately 993 million barrels of oil equivalent, including 125 billion cubic meters of natural gas. The development is expected to enhance Algeria’s energy production capacity and strengthen its position in regional and international energy markets.
Sonatrach, the country’s largest oil and gas producer, has been actively expanding partnerships with foreign companies to increase production and upgrade infrastructure. In recent years, the company has signed multiple agreements aimed at boosting upstream output and diversifying partnerships. Among these is a recent $850 million deal with China’s Sinopec for hydrocarbon exploration and development.
Algeria’s government has been prioritizing energy sector investment as part of its broader economic development strategy. Earlier this month, the country’s energy minister announced plans to invest $60 billion in the energy industry over the next five years. The investment program will focus on upstream exploration and production, with the goal of expanding capacity, supporting export growth, and ensuring energy security.
As a member of the Organization of the Petroleum Exporting Countries (OPEC), Algeria plays an important role in global energy supply. The North African nation seeks to maintain a balance between increasing exports and meeting domestic energy needs while also working toward a gradual transition to more sustainable energy sources.
The new partnership with Midad Energy marks another significant step in Sonatrach’s strategy to attract foreign investment, strengthen technological cooperation, and enhance resource development in key hydrocarbon regions. The Illizi Basin project is expected to contribute to long-term production stability and reinforce Algeria’s position as a reliable energy supplier in the international market.
