Algeria’s state-owned energy company Sonatrach announced on Saturday that it has signed a $5.4 billion agreement with Saudi Arabia’s Madad Energy to explore and develop oil and gas fields in the Illizi region of southeastern Algeria.

The long-term contract spans 30 years, with an option for a 10-year extension, and includes a seven-year exploration phase, followed by development and production operations. The deal is part of Algeria’s broader strategy to attract foreign investment and boost its hydrocarbon output.

The agreement was signed by Sonatrach CEO Rachid Hachichi and Sheikh Abdulilah bin Mohammed bin Abdullah Al-Aiban, CEO of Madad Energy North Africa, in the presence of Algerian Energy and Mines Minister Mohamed Arkab, Saudi Ambassador to Algeria Abdullah bin Nasser Al-Busairi, and senior officials from the country’s energy regulatory authorities.