Algeria’s oil and gas firm, Sonatrach, Monday, signed a $5.4 billion oil and gas deal with a Saudi Energy company, Midad for oil exploration in Algeria’s Illizi Basin.
Midad Energy, North Africa, is a subsidiary of Saudi Arabia’s Alturki Holding, marking another step in the country’s drive to attract foreign investment and expand hydrocarbon output.
The 30-year agreement, which includes a seven-year exploration phase and an option for a 10-year extension will see Midad Energy fully finance the project, committing $288 million to exploration in the Illizi South perimeter, located about 100 kilometers south of In Amenas near the Libyan border.
The deal,which was initially reported by Ennahar TV, underscores Sonatrach’s ongoing strategy to modernize its energy sector through international partnerships. The company recently sealed an $850 million hydrocarbon development contract with China’s Sinopec, highlighting growing collaboration with global investors.
Earlier this month, Algeria’s Energy Minister announced plans to inject $60 billion into the energy sector over the next five years, focusing on upstream exploration and sustainable transition initiatives.
As a member of OPEC, Algeria aims to solidify its role as a reliable energy supplier to global markets while balancing domestic needs and advancing its renewable ambitions — a vision further reinforced by this new Saudi-backed venture.