Algeria signs $4.5 billion oil and gas agreement with Saudi Arabia’s Midad Energy

📷The logo of the state energy company Sonatrach is pictured at the headquarters in Algiers, Algeria November 25, 2019. REUTERS/Ramzi Boudina

Algiers, October 14, 2025 (Saudi Arabia Breaking News) – Algeria’s state-owned energy company Sonatrach has signed a contract valued at approximately $4.5 billion with Saudi Arabia’s Midad Energy for oil and gas exploration and development in the Illizi Basin, Reuters reported.

The agreement was signed through Midad Energy North Africa, which will fully fund the investment, including $288 million allocated for exploration activities. The Illizi South perimeter is located about 100 kilometers south of In Amenas, near the Libyan border.

According to SPA, total production by the end of the contractual period is expected to reach around 993 million barrels of oil equivalent, including 125 billion cubic meters of natural gas.

Sonatrach, Algeria’s largest oil and gas producer, has been actively seeking foreign partnerships to boost output and modernize infrastructure. The company recently signed an $850 million agreement with China’s Sinopec for hydrocarbon exploration and development.

Algeria’s Minister of Energy said earlier this month that the country plans to invest $60 billion in the energy sector over the next five years, focusing on upstream exploration, production, and sustainable energy transition.

As a member of OPEC, Algeria aims to reinforce its position as a key energy supplier to international markets while meeting domestic needs and advancing toward cleaner energy sources.