Midad Energy Begins $3 Billion Illizi Gas Project Phase
Saudi energy group Midad Energy has commenced the initial development phase of its gas fields in Algeria's southeastern Illizi basin. This phase allocates $3 billion towards an overall investment of $5.4 billion in an exclusive partnership with Sonatrach, Algeria's national energy company. The project, focusing on discoveries in the eastern Illizi sector near the strategic In Amenas hub, aims to begin commercial gas deliveries by the end of 2028.
The production sharing contract between Midad Energy and Sonatrach, signed in October 2025, became officially effective on March 17, 2026. Midad Energy's North Africa operations director, Mourad Bellik, confirmed that the field development plan has been submitted to regulatory authorities. The National Agency for the Valorization of Hydrocarbon Resources (Alnaft) is currently reviewing the technical roadmap, with its formal approval set to trigger on-site engineering and drilling operations.
The technical program for this phase includes extensive two- and three-dimensional seismic acquisition campaigns, a series of drilling operations, and the installation of essential gas treatment and compression infrastructure. Midad Energy plans to utilize a streamlined industrial approach, including the prefabrication of substantial modules and heavy equipment internationally for assembly in Illizi, to meet the late 2028 deadline. The group views Illizi as its strategic entry point into the Maghreb region and is considering expanding its portfolio with additional exploration and production opportunities across Algeria and the broader North African basin.
