Saudi Arabia-based Midad Energy North Africa and SONATRACH have signed a strategic production-sharing hydrocarbon contract at SONATRACH’s headquarters, for the exploration and development of hydrocarbons in Algeria’s Illizi Basin.
The agreement, signed in the presence of Saudi Ambassador to Algeria Abdullah bin Nasser Al-Busairi covers the exploration and exploitation of hydrocarbons in the Illizi South area, located approximately 100 km south of In Amenas. This Contract signed under the aegis of the hydrocarbon Law n°19-13 is of 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 Rachid HACHICHI and the Chairman and 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, President of the Managing committee of the National Agency for the Valorization of Hydrocarbons Resources and the Chairman of the Hydrocarbon Regulatory Authority.
The overall investments projected for the exploration and exploitation of this area will be 100 percent funded by the partner Midad Energy North Africa for a total amount of around $5.4 billion, including $288 million allocated to research investments.
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.
This hydrocarbons contract signing marks the successful conclusion of efforts stemming from the Protocol of Agreement signed between SONATRACH and Midad Energy North Africa on March 3, 2024.
