ALGIERS (WO) — Sonatrach has signed a $5.4 billion production-sharing settlement with Midad Power North Africa, a subsidiary of Saudi Arabia’s Midad Power, for exploration and growth throughout the Illizi South perimeter in southeast Algeria.
This hydrocarbon contract was signed by SONATRACH Chairman and CEO Mr. Rachid HACHICHI and the Chairman & CEO of Midad Power North Africa, Sheikh Abdulelah Bin Mohammed Bin Abdullah AL-AIBAN. (Picture supply: Sonatrach)
The 30-year contract, signed beneath Algeria’s hydrocarbon legislation no. 19-13, features a seven-year exploration section and permits for a 10-year extension. Midad Power will fund 100% of the funding, together with $288 million for exploration, Sonatrach mentioned.
The mission space lies about 100 km (62 miles) south of In Amenas and is predicted to yield 993 million boe over the lifetime of the contract — together with 125 Bcm of gasoline and 204 million barrels of liquids (103 million barrels of LPG and 101 million barrels of condensate).
“This contract marks a brand new section of cooperation between Algeria and Saudi Arabia within the vitality sector,” mentioned Sonatrach CEO Rachid Hachichi, through the signing ceremony attended by Algerian Power Minister Mohamed Arkab and Saudi Ambassador Dr. Abdullah bin Nasser Al-Busairi.
Sonatrach mentioned this system will comply with environmental rules and use superior digital applied sciences, whereas giving precedence to native content material and subcontracting with Algerian suppliers.
The signing follows a protocol settlement reached between the 2 corporations in March 2024, marking certainly one of Algeria’s largest upstream partnerships in recent times.
