Algeria's oil and gas group Sonatrach and Saudi company Midad Energy North Africa have signed a production-sharing contract for the exploration and development of hydrocarbons within the Illizi South contractual area, located approximately 100 km south of In Amenas, in Algeria. The contract has an initial term of 30 years, extendable by an additional 10 years, and includes a 7-year exploration phase. All investments related to the exploration and development of the area, estimated at approximately US$5.4bn, will be fully financed by Midad Energy North Africa. Of this total, around US$288m will be dedicated to exploration activities.
By the end of the contractual period, total production from the Illizi South area is expected to reach 993 Mboe, including 125 bcm of gas for commercial use and 204 mbl of liquid hydrocarbons, comprising 103 mbl of LPG and 101 mbl of condensate.