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Ageria has approved a $5.4 billion hydrocarbon investment project in the Illizi South block after President Abdelmadjid Tebboune signed a presidential decree ratifying the development agreement, according to the Official Gazette.
Presidential Decree No. 26-113, issued on 8 March 2026 and underpinned by Articles 91-7 and 141, approves the hydrocarbon contract signed in Algiers on 13 October 2025 between state energy company Sonatrach and Saudi Arabia's Midad Energy North Africa.
The contract followed an award decision issued by the National Agency for the Valorisation of Hydrocarbon Resources (ALNAFT) on 11 October 2025, granting both companies the rights to explore and exploit hydrocarbons in the Illizi South area.
The total investment of about $5.4 billion will be fully financed by Midad Energy, including approximately $288 million allocated to the exploration phase.
Structured under Algeria’s Hydrocarbon Law No. 19-13, the agreement spans 30 years, with the possibility of a 10-year extension, and includes a seven-year exploration phase.
Over the lifetime of the project, total production is expected to reach approximately 993 million barrels of oil equivalent (boe).
Projected output includes around 125 billion cubic metres of marketable natural gas, along with 204 million barrels of liquid hydrocarbons, comprising 103 million barrels of LPG and 101 million barrels of condensates.
(Writing by Majda Muhsen; Editing by Anoop Menon)
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