(MENAFN) On Monday, the Algerian energy giant Sonatrach inked an agreement with Saudi Medad Energy Company to jointly develop gas fields in the Illizi region of Algeria, situated along the border with Libya. Sonatrach made an official statement declaring the signing of a protocol of agreement with Medad Energy - North Africa, underscoring the mutual commitment of both entities to establish a partnership aimed at assessing and exploiting gas reservoirs in southeastern Algeria's Illizi region.

The discussions between the two companies primarily centered on exploring opportunities for collaboration in hydrocarbon exploration and production, alongside other areas pertinent to the oil and gas industry. Illizi, a province rich in natural gas reserves, boasts significant fields including Ain Amenas, Tignourine, Tinhart, Ohant, and Ain Tsila. Sonatrach, the state-owned hydrocarbons company, currently operates some of these fields independently while engaging in partnerships with foreign entities like Norwegian Equinor and Italian Eni for others.

Under Algeria's new hydrocarbons law introduced in 2020, Sonatrach has been actively pursuing collaborations with international energy companies to develop oil and gas fields. The authorities tout the new legislation as a stimulus for investment in the sector, offering incentives such as exemptions from various fees and taxes to attract foreign investors. The partnership between Sonatrach and Medad Energy signifies a significant step forward in leveraging Algeria's abundant natural resources for mutual benefit and economic growth.

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