Algiers, November 30, 2025 – Sonatrach and Medad Energy have reached an agreement on a roadmap for the implementation of the Illizi Sud contract. The agreement follows a meeting between the Minister of State, Minister of Hydrocarbons and Mines, Mohamed Arkab, and the CEO of Saudi Arabia’s Medad Energy North Africa, Sheikh Abdul Ilah bin Muhammad bin Abdullah Al-Aiban.
The meeting, which was also attended by Sonatrach CEO, Toufik Hakkar, focused on strengthening bilateral relations and exploring cooperation opportunities in the hydrocarbons sector. Discussions centered on the production-sharing contract signed between the two companies for exploration and exploitation activities in the Illizi Sud area, located in the Illizi Basin.
Both parties reviewed the progress of consultations aimed at establishing a joint roadmap to ensure the contract’s timely implementation, adhering to agreed-upon standards. They also explored new partnership and investment opportunities across the oil and gas value chain, including strategic projects focused on knowledge transfer, expertise exchange, and human capital development in exploration and production, both within Algeria and abroad.
Minister Arkab emphasized the strong ties between Algeria and Saudi Arabia, highlighting the importance of fostering economic partnerships based on mutual interests and serving the energy visions of both nations. Sheikh Abdul Ilah bin Muhammad bin Abdullah Al-Aiban expressed Medad Energy’s commitment to expanding its investment footprint in Algeria, citing the promising opportunities within the hydrocarbons sector. He reiterated the company’s dedication to strengthening its strategic collaboration with Sonatrach and accelerating the completion of joint projects, leveraging cutting-edge oil and gas technologies for mutual benefit.
In October, Sonatrach and Medad Energy North Africa signed a production-sharing contract for the Illizi Sud area, in accordance with Law 19-13 related to hydrocarbons. The contract has a 30-year term, extendable based on mutual agreement.
