Algeria and Saudi Arabia Ink $5.4 Billion Energy Deal
Algeria's Sonatrach has partnered with Saudi Arabia's Midad Energy for oil and gas exploration in the Illizi Basin, under a $5.4 billion contract. This 30-year deal, with a potential 10-year extension, includes a seven-year exploration period, enhancing Algeria's energy sector alongside international collaborations.
In a significant energy partnership, Algeria's state-owned company Sonatrach announced a $5.4 billion contract with Saudi Arabia's Midad Energy for oil and gas exploration in Algeria's Illizi Basin. The agreement, which marks a substantial investment in the country's resource development, extends over 30 years with an option to expand for another decade.
Under the contract, Midad Energy North Africa will finance the entire investment, including a $288 million allocation for the exploration phase. The Illizi South perimeter, close to the Algerian town of In Amenas and near the Libyan border, will be the focus of these efforts. This initiative is part of Sonatrach's strategy to boost foreign partnerships and upgrade its infrastructure.
This new alliance follows Algeria's recent collaborations, including a noteworthy $850 million deal with China's Sinopec. The country, a member of OPEC, is committed to a $60 billion investment in its energy sector over the next five years, aimed at enhancing upstream exploration and production to support global and domestic energy demands.
(With inputs from agencies.)
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