Riyadh, Saudi Arabia - Midad Energy, a leading Saudi energy investor-operator with a distinguished history of pioneering international ventures, has signed a $5.4 billion production-sharing agreement with Algeria’s state-owned oil and gas company, Sonatrach, for the exploration and development of the Illizi South block in the Illizi Basin, near the Libyan border. The agreement, which is fully funded by Midad Energy, 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 see a seven-year exploration phase with a USD 288 million budget. Over the project’s lifespan, output is expected to reach 993 million barrels of oil equivalent, including 125 billion cubic meters of natural gas. It stands as 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. The Illizi South venture reinforces 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, described the agreement as a pivotal step in the company’s international growth strategy. “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. We are committed to deploying advanced technologies and sustainable practices to maximize resource recovery while safeguarding the environment,” he said.

The signing ceremony took place in Algiers and was attended by Mohamed Arkab, Minister of Energy and Mines of Algeria; Rachid Hachichi, CEO of Sonatrach; Abdulelah bin Mohammed Al-Aiban, Chairman and CEO of Midad Energy; Abdullah bin Nasser Al-Busairi, Saudi Ambassador to Algeria; Samir Bekhti, Chairman of the National Agency for Hydrocarbon Resources Valorization; and Amine Remini, President of the Algerian Hydrocarbons Regulatory Authority.

Midad Energy is a Saudi-based energy investor-operator with a proven track record in upstream oil and gas development, infrastructure, and strategic partnerships. Midad Energy continues to drive innovation, efficiency, and sustainable growth across the global energy sector.

About Midad Energy

Midad Energy is a leading Saudi energy and infrastructure company committed to driving innovation, sustainability, and efficiency across the energy value chain. With a diversified portfolio spanning oil and gas services, renewable energy, and industrial investments, Midad Energy delivers integrated solutions that support the Kingdom’s Vision 2030 ambitions and the global transition toward a more sustainable energy future. Through strategic partnerships, advanced technologies, and a steadfast focus on operational excellence, Midad Energy continues to play a vital role in shaping the future of energy in Saudi Arabia and beyond.

For more information, please visit www.midadenergy.com