MidadEnergy’s North Africa arm signed a USD 5.4 bn production-sharing agreement with Algeria’s state-owned Sonatrach to explore and develop hydrocarbons in the Illizi Basin in southern Algeria, according to a press release from Sonatrach.

The details: The 30-year contract — extendable by 10 years — includes a seven-year exploration phase. Midad will fully finance the planned investments, including USD 288 mn dedicated to exploration activities.

The goals: The partnership aims to produce a total of 933 mn barrels of oil equivalent over the contract period. This includes 125 bn cubic meters of natural gas and 204 mn barrels of liquid hydrocarbons split between 103 mn barrels of LPG and 101 mn barrels of condensates.

In the works for a while: The two companies inked an MoU in March to enter into a partnership to appraise and fast-track the development of gas fields in the Illizi region.

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