Algeria Strengthens its Position in the Energy Sector
Algeria is reinforcing its position in the energy sector thanks to a major agreement between Sonatrach and the Saudi company Midad Energy North Africa. The contract, signed on October 13, 2025, in Algiers, is worth $5.4 billion to explore and develop the Illizi oil and gas basin in the southeast of the country, near the Libyan border.
Key Details of the Contract
- The contract spans 30 years, with an option to extend for an additional 10 years
- The 7-year exploration phase will be fully financed by Midad Energy, totaling $288 million
- The project aims to produce approximately 993 million barrels of oil equivalent, including:
- 125 billion cubic meters of natural gas
- Liquefied petroleum gas (LPG)
- Condensate
National Energy Strategy
The agreement is part of Algeria's national energy strategy, which aims to invest $60 billion in energy between 2025 and 2029, primarily for hydrocarbon exploration and production. This strategy also integrates energy transition and reduction of greenhouse gas emissions, reinforcing Algeria's role in the international energy market.
