Algeria’s national oil company, SONATRACH, has signed a production-sharing contract with Midad Energy North Africa, a Saudi-based energy firm, for the exploration and development of hydrocarbons in the Illizi South Field, located approximately 100 km south of In Amenas.
The agreement was signed by Mr. Rachid Hachichi, Chairman and CEO of SONATRACH, and Sheikh Abdulelah Bin Mohammed Bin Abdullah Al-Aiban, Chairman and CEO of Midad Energy North Africa.
The signing ceremony was witnessed by Mr. Mohamed Arkab, Minister of State, Minister of Hydrocarbons and Mines; Dr. Abdullah bin Nasser Abdullah Al-Busairi, Ambassador of the Kingdom of Saudi Arabia to Algeria; as well as the President of the Managing Committee of the National Agency for the Valorization of Hydrocarbon Resources and the Chairman of the Hydrocarbon Regulatory Authority.
The contract, signed under the provisions of Hydrocarbon Law No. 19-13, has a duration of 30 years, extendable for an additional 10 years, and includes a 7-year exploration period.
The total investment for the exploration and development of the field is estimated at US$5.4 billion, which will be fully financed by Midad Energy North Africa. Of this amount, US$288 million is allocated for exploration activities.
The hydrocarbon program will be implemented in strict compliance with Algeria’s environmental regulations and will incorporate advanced technological and digital solutions.
Furthermore, the project emphasizes local content development, prioritizing subcontracting and procurement from national suppliers.
At the end of the contractual period, total production from the Illizi South perimeter is projected to reach 993 million barrels of oil equivalent (boe), including 125 billion cubic meters of natural gas for marketing and 204 million barrels of liquid hydrocarbons, comprising 103 million barrels of LPG and 101 million barrels of condensate.
Source: https://energynewsafrica.com
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