Saudi Midad Energy Invests $3 Billion in Illizi Gas Project
Saudi group Midad Energy has announced plans to invest $3 billion in the first phase of its gas project located in the Illizi wilaya, southeastern Algeria. This initial commitment forms part of a larger total investment plan valued at $5.4 billion for developing gas discoveries in the eastern part of the Illizi perimeter. Midad Energy’s Operations Director for North Africa, Mourad Bellik, indicated that the project aims to begin gas production by late 2028.
The comprehensive development plan for the project has already been submitted to the National Agency for Hydrocarbon Resources Valorization (Alnaft), with work commencing upon its approval. The production sharing contract between Midad and Sonatrach was finalized in October 2025 and became effective on March 17, 2026. Midad's projections anticipate initial gas production reaching approximately 8 million cubic meters per day, subsequently increasing to 11.3 million cubic meters daily. A second phase, focusing on the western part of the perimeter, is expected to ultimately raise the total production capacity to 20 million cubic meters per day.
The project encompasses various operations, including exploration activities, 2D and 3D seismic surveys, and the drilling of multiple wells. It also involves the installation of essential equipment for gas treatment and compression. Midad Energy plans to collaborate closely with Sonatrach, its unique partner, as well as engaging Algerian and international service companies to streamline implementation. This significant venture represents a foundational step for Midad Energy in Algeria, with the group actively exploring further opportunities for growth in hydrocarbon exploration and production both within Algeria and the wider region.
