Algeria’s energy minister Mohamed Arkab discussed launching the project at talks with Midad’s chairman Sheikh Abdulelah Mohammed Al Aiban in the capital Algiers this week.

The talks covered cooperation between the state-owned Sonatrach and Midad following the signing of a production-sharing agreement for the Illizi South concession, the ministry said in a statement.

Sonatrach and Midad signed the deal in October last year for oil and gas exploration in the southern region. Midad will finance the operations during the 30-year contract, which can be extended by a further 10 years.

Sonatrach, one of the world’s largest state hydrocarbon firms, estimates recoverable reserves in the Illizi South block at 993 million barrels of oil equivalent.

In March, Algerian President Abdelmadjid Tebboune approved the deal, which includes a seven-year exploration phase, with about $288 million earmarked for research.

The agreement highlights Algeria’s efforts to attract foreign investment in its hydrocarbon sector to enhance production levels and revitalise its reserves.

Algeria wants to modernise its energy infrastructure and increase its share of the global energy market following a decline in hydrocarbon output and reserves during the past few years due to lack of investment.

“Sunday’s meeting covered the promising opportunities offered by this project to enhance investment across the various stages of the oil and gas value chain especially in the areas of exploration, development and production,” the ministry said.

“This will contribute to supporting national production capacities, promoting local content, developing skills and facilitating technology transfer.”

Algeria controls nearly 13 billion barrels of recoverable oil reserves, which could run out within 30 years at current production levels in the absence of new major discoveries, according to official estimates.