Algerian energy company inks oil and gas deal with Saudi firm

The Algerian energy company Sonatrach confirmed on October 13th that it had inked a deal worth roughly $5.4 billion with Saudi Arabia’s Midad Energy for oil and gas exploration, as well as development in the Illizi basin of the North African country.

According to The New Arab via Reuters, Sonatrach is Algeria’s biggest oil and gas producer and has been eyeing international partnerships to update its infrastructure.

Midad Energy North Africa will be wholly funding the investment. Part of the investment – $288 million – will go towards exploration. The illizi south perimeter is situated roughly 100km, to the south of the Algerian town, In Amenas, which is close to the Libyan border.

It was reported on September 30th that the Algerian Minister of state for hydrocarbons and mines, Mohamed Arkab, hosted a meeting with Jason Zhen Liu, the vice president of the Chinese company “Jereh” for oil and gas engineering.

In this meeting, which was held in Algiers, the subject of boosting engineering, field development and natural gas processing was discussed.

China’s Sinopec has secured contract deals worth up to $850 million for hydrocarbon development.

China and Algeria’s alliance goes beyond oil and gas. China also backed a tyre factory in Algeria which was launched on July 20th in the Tafraoui industrial zone. The facility has been supported by around 54 billion dinars in investment.

Algeria’s energy minister had stated this month that his nation intends to invest $60 billion in its energy sector for the next five-year period. Algeria reportedly intends to fortify its role as a major provider of energy across global markets.

The investments might not only promote sustainable sources for the present but also for the future of Algeria, with its foreign partnerships also boosting its bilateral relations with the international community.

The New Arab via Reuters, Maghrebi.org