Saudi Arabia, Algeria sign $5.4 billion hydrocarbons exploration and production deal

Saudi Arabia's Madad Energy to fully finance Ilizi Basin project with Algeria’s Sonatrach

Last updated: October 14, 2025 | 15:10

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Dubai: Saudi Arabia and Algeria have signed a landmark contract to explore and exploit hydrocarbons in Algeria’s Ilizi Basin, marking a major step in strengthening energy cooperation between the two Arab nations.

The deal was struck by Algerian state-owned oil company Sonatrach and Saudi Arabia’s Midad Energy North Africa. The production-sharing contract (PSC), worth around $5.4 billion (AD704.08 billion), focused on oil and gas exploration in Algeria’s Illizi Basin.

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The signing ceremony, held in Algiers, was attended by Algeria’s Minister of Energy and Mines Mohamed Arkab, and Saudi Ambassador to Algeria Dr. Abdullah bin Nasser Al Busairi.

Under the terms of the deal, the total investment is estimated at $5.4 billion, including $288 million allocated for exploration works. Madad Energy will finance 100 per cent of the project.

By the end of the contractual period, total production is projected to reach approximately 993 million barrels of oil equivalent, including 125 billion cubic metres of natural gas, underscoring the scale and strategic value of the partnership.

Khitam Al Amir

With over 30 years of journalistic experience spanning from Jordan to the UAE, Khitam has spent the past 22 years reporting on national and regional news from Dubai, with a strong focus on the UAE, GCC and broader Arab affairs. As Chief News Editor, she brings extensive expertise in delivering breaking and engaging news to readers. Beginning her tenure as a translator, she advanced through roles as Senior Translator and Chief Translator before transitioning to editorial positions, culminating in her current leadership role. Her responsibilities encompass monitoring breaking news across the UAE and the broader Arab region, ensuring timely and accurate dissemination to the public. Born into a family of journalists, Khitam's passion for news was ignited early in life. A defining moment in her youth occurred in September 1985 when she had the opportunity to converse with the late British Prime Minister Margaret Thatcher during her visit to a Palestinian refugee camp north of Amman. During this encounter, Khitam shared her family's experiences of displacement from their home in Palestine and their subsequent refuge in Jordan. This poignant interaction not only deepened her understanding of geopolitical issues but also solidified her commitment to pursuing a career in journalism, aiming to shed light on the stories of those affected by regional conflicts. Khitam’s commitment to accurate and timely reporting drives her to seek out news that interests readers, making her a trusted source for news on the UAE and the broader Gulf region.

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