Hachichi: “The Project with Midad Energy is Mutually Beneficial and Marks a New Era in Algerian-Saudi Cooperation”
✍️ BY: Dr. Hana Saada
Algiers – October 2025 – In a stride towards deepening Algerian-Saudi economic ties, Rachid Hachichi, President and CEO of Sonatrach, hailed the newly signed contract between Sonatrach and Midad Energy North Africa as “a new phase in the consolidation of bilateral cooperation.” The agreement, concluded under the provisions of Law 19-13 governing hydrocarbon activities, marks a pivotal development in the exploration and exploitation of hydrocarbons within the Illizi-South contractual perimeter, located in the resource-rich basin of Illizi in southeastern Algeria — an area described by Hachichi as “highly promising in terms of energy potential.”
The project, which extends over a 30-year period renewable for an additional decade, entails a total financial commitment estimated at 5.4 billion USD, including an initial exploration phase of 288 million USD. In a remarkable show of confidence, Midad Energy will assume full financial responsibility for the project — a gesture that, according to Hachichi, underscores the Saudi company’s trust in Algeria’s stable economic and legal environment and in the renowned technical expertise of Sonatrach.
Beyond the economic dimension, the partnership reflects Sonatrach’s enduring strategy to strengthen local content. Hachichi emphasized that a significant portion of the operational work will be entrusted to Algerian companies, thereby fostering the national industrial fabric and promoting the development of local competencies throughout the entire hydrocarbon value chain. This approach, he stressed, aligns with Algeria’s commitment to creating sustainable economic opportunities and ensuring technological transfer in key energy sectors.
From a production standpoint, the project targets a cumulative output of approximately 993 million barrels of oil equivalent over its duration — including an estimated 125 billion cubic meters of natural gas and 204 million barrels of liquid hydrocarbons, composed of 103 million barrels of LPG and 101 million barrels of condensates. These projections, according to Hachichi, reaffirm “the immense potential of Algeria’s subsoil and the vast economic opportunities it holds.”
Environmental stewardship and technological innovation stand at the core of this ambitious venture. Hachichi underscored that operations will strictly adhere to international standards of safety, energy efficiency, and sustainability, integrating the most advanced digital technologies available in the global petroleum industry.
Recalling that the agreement stems from the Memorandum of Understanding signed on March 3, 2024, between Sonatrach and Midad Energy North Africa, Hachichi described the contract as “the fruit of constructive dialogue and a deepened partnership,” emblematic of a model Arab cooperation founded on mutual trust, shared interests, and respect for commitments.
Concluding his statement, the head of Sonatrach reaffirmed his conviction that this partnership “will significantly enhance Algeria’s energy capacity and broaden the horizons of bilateral cooperation in the field of research, innovation, and the development of natural resources.”
This strategic alliance between Algiers and Riyadh thus not only strengthens the energy partnership between the two nations but also sets a new benchmark for Arab collaboration rooted in economic vision, mutual confidence, and sustainable progress.
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