Saudi "Midad" Invests $5.4 Billion with "Sonatrach" for Hydrocarbons Production in Algeria

SadaNews - The Algerian hydrocarbons company "Sonatrach" and the Saudi North Africa energy company Midad signed a production-sharing agreement today, Monday, to explore and exploit hydrocarbons in the "Illizi" region in southern Algeria.

According to a statement, the total planned investments for exploring and exploiting this area will be fully funded by "Midad" with a total amount of $5.4 billion, including $288 million allocated for research investments.

The two companies aim to achieve a total production of 933 million barrels of oil equivalent, including 125 billion cubic meters of natural gas intended for marketing, and 204 million barrels of liquid hydrocarbons distributed over 103 million barrels of liquefied petroleum gas and 101 million barrels of condensates by the end of the contractual period.

The contract between the two companies extends for 30 years, extendable for an additional 10 years, of which 7 years are designated for exploration.