Sonatrach secures $5.4 Billion Investment from Saudi Midad Energy North
Algiers – Algeria‘s state-owned oil and gas company, Sonatrach, has signed a $5.4 billion contract with Saudi energy firm Midad Energy North for hydrocarbon exploration and production, marking the company’s second major deal in under four months. The agreement, finalized today, july 26, aims to bolster Algeria’s hydrocarbon sector and capitalize on a favorable investment climate.
This ample investment underscores Saudi Arabia’s growing confidence in Algeria’s energy potential and represents a meaningful boost to Sonatrach’s development plans. The deal will focus on joint exploration and exploitation projects, strengthening Algeria’s position as a key energy supplier and fostering economic growth. The contract follows a $1.3 billion agreement with Italian energy giant Eni on July 7, signaling a wave of foreign investment in algeria’s hydrocarbon resources.
According to a statement released by Sonatrach, the Saudi company expressed keen interest in expanding its investments within Algeria, citing ”the exceptional investment climate and the promising opportunities offered by the hydrocarbon sector.” The agreement was preceded by a working meeting between Midad energy North officials and Sonatrach CEO Rachid Hachichi, initially anticipated to culminate in a signing during the first half of 2025.
The new contract builds upon existing partnerships and reflects Algeria’s strategic importance in the global energy market. The exploration and production activities will be centered in key Algerian hydrocarbon regions, contributing to increased output and revenue for the nation.
