Riyadh - Mubasher: Saudi energy investor-operator Midad Energy has signed a $5.40 billion production-sharing agreement with Algeria’s state-owned oil and gas company Sonatrach, according to a press release.

The deal, fully funded by Midad Energy, covers the exploration and development of the Illizi South block in the Illizi Basin, near the Libyan border. It spans 30 years with an option to extend for an additional decade.

Located about 100 kilometers south of In Amenas, the Illizi South block will witness a seven-year exploration phase with a $288 million budget.

The overall output is expected to reach 993 million barrels of oil equivalent (BOE), including 125 billion cubic meters of natural gas.

It marks one of the largest Saudi private-sector energy investments in North Africa, highlighting the deepening energy ties between Saudi Arabia and Algeria, both OPEC members.

Midad Energy’s entry into Algeria strengthens its position as a leading developer of complex, high-value energy projects across strategic global hubs.

Likewise, the Illizi South venture anchors the company’s commitment to expanding its footprint in North Africa and advancing resource development through innovation and sustainable practices.

Abdulelah bin Mohammed Al Aiban, Chairman and CEO of Midad Energy, commented: “This agreement represents a significant expansion of Midad Energy’s global portfolio. Our experience in delivering large-scale upstream projects, combined with Sonatrach’s deep local expertise, will ensure the Illizi South block is developed to its full potential.”