Midad Energy signs a $5.4 billion production sharing contract with Sonatrach
A 30-year production sharing contract for the Illizi Sud perimeter in south-eastern Algeria. Midad Energy funds 100% of the estimated US$5.4 billion investment.
Midad Energy, through its Amsterdam-registered company Midad Energy North Africa B.V., signed a production sharing contract with Sonatrach on 13 October 2025 for the exploration and exploitation of hydrocarbons in the Illizi Sud perimeter. The perimeter lies around 100 kilometres south of In Amenas, near Algeria’s border with Libya. The contract was signed at Sonatrach’s headquarters in Algiers.
The total investment is estimated at US$5.4 billion and is funded entirely by Midad Energy, including US$288 million for exploration. The contract runs for 30 years, with an option to extend it by a further 10, and opens with a seven-year exploration phase. It was concluded under Algeria’s Hydrocarbons Law No. 19-13.
What the contract covers
Sonatrach estimates that the perimeter will produce around 993 million barrels of oil equivalent over the life of the contract: 125 billion cubic metres of natural gas and 204 million barrels of liquid hydrocarbons, made up of 103 million barrels of LPG and 101 million barrels of condensate.
The work programme runs from exploration through appraisal to full field development. Midad Energy carries the full financial commitment at every stage, including the exploration risk.
The signing
The contract was signed by Rachid Hachichi, Chairman and Chief Executive Officer of Sonatrach, and Sheikh Abdulelah Mohammed AlAiban, Chairman and Chief Executive Officer of Midad Energy North Africa. The ceremony was attended by Mohamed Arkab, Algeria’s Minister of Hydrocarbons and Mines; Dr Abdullah bin Nasser Al-Busairi, Ambassador of the Kingdom of Saudi Arabia to Algeria; and the heads of ALNAFT and ARH, Algeria’s hydrocarbon agency and regulator.
Commitments
Under the contract, the partners commit to environmental compliance, to the latest technology and digital solutions, and to local content, giving priority to Algerian suppliers and subcontractors.
A long-standing relationship
The agreement continues a working relationship with Sonatrach and extends a position in Algeria that Midad Energy has held since 2010. It follows the model the company has worked to since 1994: a funded partner to a national oil company, which holds the resource and the regulatory relationship.
Figures and signing details as announced by Sonatrach on 13 October 2025.
About Midad Energy
Midad Energy is a private Saudi energy company owned by Sheikh Abdulelah Mohammed AlAiban, founded in 1994 and headquartered in Riyadh. Its legal name is Midad National Energy Company. It explores for and produces oil and gas, invests in energy infrastructure, and holds interests in Saudi Arabia, Algeria, Egypt and Azerbaijan. Midad Energy employs more than 700 people directly and around 500 more indirectly.