SONATRACH and Midad Energy North Africa officially signed a production-sharing hydrocarbon contract today at SONATRACH’s headquarters. This agreement focuses on the exploration and extraction of hydrocarbons in the Illizi South area, situated approximately 100 km south of In Amenas.
The contract was executed by Mr. Rachid HACHICHI, Chairman and CEO of SONATRACH, and Sheikh Abdulelah Bin Mohammed Bin Abdullah AL-AIBAN, Chairman and CEO of Midad Energy North Africa. The signing was witnessed by Mr. Mohamed ARKAB, Minister of State and Minister of Hydrocarbons and Mines, Dr. Abdullah bin Nasser Abdullah Al-Busairi, the Ambassador of the Kingdom of Saudi Arabia to Algeria, as well as the President of the Managing Committee of the National Agency for the Valorization of Hydrocarbons Resources (ALNAFT) and the Chairman of the Hydrocarbon Regulatory Authority (ARH).
This contract, established under Hydrocarbon Law No. 19-13, has a duration of 30 years, with the possibility of a 10-year extension, and includes a research phase lasting 7 years.
Midad Energy North Africa will fully finance the projected investments for exploration and production in this region, totaling approximately US$5.4 billion, which encompasses US$288 million earmarked for research initiatives.
The program associated with this hydrocarbon contract will adhere strictly to environmental regulations in Algeria. It will also incorporate the latest technological and digital advancements. Additionally, there will be a strong emphasis on local content and subcontracting with national suppliers during the execution of this contract.
At the conclusion of the contractual period, the anticipated production from the Illizi South area is projected to reach 993 million barrels of oil equivalent (boe), comprising 125 billion cubic meters of gas for marketing and 204 million barrels of liquid hydrocarbons, including 103 million barrels of LPG and 101 million barrels of condensate.
Source: SONATRACH
