Algeria Taps Saudi Investment in $5.4 Billion Energy Deal

Algeria's premier energy company, Sonatrach, has officially entered into a $5.4 billion contract with Saudi Arabia's Midad Energy. This strategic alliance focuses on the exploration and development of oil and gas resources within Algeria's Illizi Basin.

The long-term contract spans 30 years, with an option to extend for an additional decade. It includes a comprehensive seven-year exploration phase, during which Midad Energy North Africa will fully back the investment with $288 million earmarked specifically for exploration efforts. The Illizi South perimeter is strategically positioned 100 km south of the town of In Amenas, close to the Libyan border.

This initiative reflects Algeria's broader ambition to bolster output and rejuvenate existing infrastructure through foreign collaboration. Concurrently, the nation is poised to invest $60 billion in its energy sector over the next five years, in line with its goal to emerge as a vital supplier of energy to global markets amidst a shift toward sustainable sources.

(With inputs from agencies.)