Eni signs $1.35bn Algerian oil and gas deal
14 July 2025
Algeria’s state-owned oil and gas company Sonatrach and the Italian company Eni have signed a production-sharing hydrocarbons contract (PSC) estimated to be worth $1.35bn.
The contract covers the exploration and exploitation of the Zemoul El-Kebir concession area, located in the Berkine Basin, approximately 300 kilometres east of Hassi Messaoud, according to a statement by Sonatrach.
The deal with Eni is the latest in a string of high-profile agreements that Sonatrach has announced with international oil and gas companies.
The contract with Eni was signed under Hydrocarbons Law No 1913 and extends for a period of 30 years, with an extendable option for an additional 10 years.
It includes a seven-year exploration period, with $110m of the estimated $1.35bn investment budget expected to be used in the exploration phase.
In its statement, Sonatrach said: “The work programme associated with this contract includes the use of innovative technological methods, including the latest digital solutions related to exploitation, in addition to the use of modern technologies to improve production and recover reserves.
“It is worth noting that, within the framework of implementing this contract, preference is given to the use of local content and the use of subcontracting services from national operators.”
Expected production from the area covered by the deal has been estimated at 415 million barrels of oil equivalent, including 9.3 billion cubic metres of gas, over the contract period.
The signing of the final PSC with Eni follows a provisional deal that was signed between Sonatrach and Eni on 19 May 2024.
As well as signing the PSC relating to the Zemoul El-Kebir concession area, the two parties also signed a gas agreement aimed at defining the terms of the hydrocarbons contract relating to the marketing of dry gas quantities from the operating area, intended for export.
A framework agreement was also signed between Sonatrach and Eni Corporate University, aiming to develop the skills of Sonatrach employees and transfer knowledge through the Eni Corporate University training institution, for a period of three years.
In June, Algeria awarded five out of the six oil and gas exploration licences it offered during its 2024 bidding round, a move viewed as a success by stakeholders in the country’s energy sector.
The companies that were awarded blocks included France’s TotalEnergies, state-owned QatarEnergy, Eni and PTTEP of Thailand.
The latest licensing round was followed by meetings between Algeria’s President Abdelmadjid Tebboune and delegations from US-based oil and gas companies ExxonMobil and Chevron.
Project activity across Algeria’s energy, industrial and manufacturing sectors is steadily building as the country focuses on a vertically-integrated strategy that leverages the exploitation of its natural resources.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge
Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:
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> AGENDA: UAE-Turkiye trade gains momentum
> INTERVIEW 1: Building on UAE-Turkiye trade
> INTERVIEW 2: Turkiye's Kalyon goes global
> INTERVIEW 3: Strengthening UAE-Turkiye financial links
> INTERVIEW 4: Turkish Airlines plans further growth
> CURRENT AFFAIRS: Middle East tensions could reduce gas investments
> GCC REAL ESTATE: Gulf real estate faces a more nuanced reality
> PROJECTS MARKET: GCC projects market collapses
> INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation
> INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia
> LEADERSHIP: Nuclear power makes a global comeback
> LEVANT MARKET FOCUS: Levant states wrestle regional pressures
> GULF PROJECTS INDEX: Gulf projects index continues climb
> CONTRACT AWARDS: Mena contract award activity remains subdued
> ECONOMIC DATA: Data drives regional projects
> OPINION: A farcical tragedy that no one can end
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Dubai seeks consultants for drainage projects6 February 2026
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Modon tenders Ras El-Hekma construction contracts6 February 2026
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Egypt contractor secures €58m loan for Hungary power plant6 February 2026
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AD Ports signs Jordan Aqaba port PPP deal6 February 2026
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Chinese firm wins Ceer automotive supplier park deal6 February 2026
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The bid submission deadline is 26 February.
The first scheme under the package is TF-16-C1, which involves upgrading and rehabilitating the stormwater system east of the Dubai Canal.
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Modon tenders Ras El-Hekma construction contracts
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
MEED understands that the tenders were issued in January.
These include:
DP3 assets: covering 146 residential villas, 590 three-bedroom townhouses, 356 four-bedroom townhouses, a mall and other associated works.
Bids due on 23 February.
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DP7 assets: 120 five-bedroom villas, 230 seven-bedroom villas, 284 branded residential units and other infrastructural works.
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Modon has accelerated development works at Ras El-Hekma this year. In January, MEED reported that Modon Holding had awarded a E£15bn ($316m) contract for the construction of a project at Ras El-Hekma.
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As part of the first phase, Modon plans to develop more than 50 million square metres (sq m), including hotels and a marina.
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Last year, Abu Dhabi-based holding company ADQ appointed Modon Holding as the master developer for the Ras El-Hekma project.
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Commercial International Bank Egypt (CIB) has provided €58m in credit facilities to local firm Elsewedy Electric for the construction of a combined-cycle gas turbine (CCGT) power plant in Hungary.
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AD Ports signs Jordan Aqaba port PPP deal
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AD Ports will hold a 70% stake in the joint venture, with the remaining 30% held by ADC.
AD Ports Group will also invest AED141m ($38.4m) in the joint venture.
The signing ceremony was held at the Aqaba Special Economic Zone Authority headquarters in Aqaba on 5 February.
The agreement was signed by Hussein Safadi, CEO of ADC, and Ahmed Al-Mutawa, regional CEO of AD Ports Group.
Aqaba port handles about 80% of Jordan’s exports and 65% of its imports.
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In 2025, the terminal handled over 5.3 million tonnes of cargo and nearly 85,000 car equivalent units of Ro-Ro imports.
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The Al-Madouneh customs centre covers about 1.3 million square metres (sq m) and was inaugurated in June last year.
The announcement followed AD Ports Group’s signing of a shareholders’ agreement in January 2024 between its digital arm, Maqta Gateway, and Jordan’s Aqaba Development Corporation regarding their existing joint-venture company, Maqta Ayla.
The joint venture company will upgrade operations at the Aqaba port complex in Jordan by implementing a port community system “that leverages Maqta Gateway’s expertise, also marking the first-ever export of Abu Dhabi’s key port digitalisation solution”, AD Ports said in a statement.
AD Ports Group operates the Aqaba cruise terminal, and selected Dubai-based real estate developer Mag Group to lead the first phase of the Marsa Zayed mixed-use project.
READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
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Chinese firm wins Ceer automotive supplier park deal
6 February 2026
Beijing-headquartered Metallurgical Construction Corporation (MCC) has won a contract to undertake the steel structure works on the Ceer automotive supplier park in King Abdullah Economic City (KAEC).
The supplier park is located next to Ceer’s electric vehicle (EV) production facility in KAEC.
The automotive supplier park will include production and ancillary facilities for various suppliers and provide the material supply infrastructure for Ceer’s EV plant.
The facilities include:
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The latest contract award is another significant contract win for MCC in Saudi Arabia. In January, MEED reported that MCC had won a contract to undertake the steel structure works on Mohammed Bin Salman Stadium at the Qiddiya City project on the outskirts of Riyadh.
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