Algeria’s state energy company Sonatrach signed a $5.4 billion production-sharing contract with Saudi Arabia’s Midad Energy to explore and develop oil and gas fields in the Illizi Basin near the Libyan border, Reuters reported.
The 30-year contract, with an optional 10-year extension, allocates full financing of the initial seven-year exploration phase to Midad Energy, which has already committed $288 million for early-stage work. The project’s estimated recoverable reserves amount to 993 million barrels of oil equivalent, including 125 billion m³ of natural gas.
The deal aligns with Algeria’s policy of boosting foreign investment in its energy sector. Sonatrach has also signed an $850 million partnership with China’s Sinopec, while the government targets $60 billion in overall sector investments over the next five years.
For Saudi Arabia, this agreement extends its oil-industry expertise abroad and strengthens its international energy footprint, consistent with Vision 2030’s strategy to diversify income and export know-how across the Middle East and Africa.
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Reuters — “Algeria signs $5.4 billion oil and gas deal with Saudi firm Midad Energy.”