Saudi’s Midad Energy Signs $5.4 Billion hydrocarbon contract in Algeria

SONATARCH, Algeria and Saudi company Midad Energy North Africa signed, a production-sharing hydrocarbon contract for the exploration and exploitation of hydrocarbons on the contractual perimeter of Illizi South located nearly 100 km South In Amenas.

The overall investments projected for the exploration and exploitation of this area will be 100% funded by the partner Midad Energy North Africa for a total amount of around US$5.4 billion, including US$288 million allocated to research investments.

This Contract signed for a duration of 30 years, that can be extended for 10 additional years and provides for a research period of 7 years.

This hydrocarbon contract was signed by SONATRACH Chairman and CEO Mr. Rachid HACHICHI and the Chairman & CEO of Midad Energy North Africa, Sheikh Abdulelah Bin Mohammed Bin Abdullah AL-AIBAN, in the presence of the Minister of State, Minister of Hydrocarbons and Mines , Mr. Mohamed ARKAB, HE the Ambassador of Kingdom of Saudi Arabia to Algeria, Dr. Abdullah bin Nasser Abdullah Al-Busairi, and also the President of the Managing committee of the National Agency for the Valorization of Hydrocarbons Resources « ALNAFT» and the Chairman of the Hydrocarbon Regulatory Authority « ARH».

The program relating to this hydrocarbon contract will be carried out according to the strict compliance to the environmental requirements of the regulation in force applicable in Algeria. This program includes also the use of the latest technological and digital solutions. Furthermore, calling on Local Content and sub-contracting with national supplier under the execution of this contract will be prioritized.

The expected production under the exploitation of the Illizi South perimeter, at the end of the contractual period is estimated at 993 million boe, of which 125 billion cubic meters of gas intended for marketing and 204 million barrels of liquid hydrocarbons including 103 million barrels of LPG and 101 million barrels of condensate.