Algeria Closes Major Shale Gas Deals with ExxonMobil and Chevron
Algeria is on the verge of finalizing groundbreaking agreements with energy giants ExxonMobil and Chevron to unlock the North African nation’s vast shale gas reserves for the first time. The deals represent a seismic shift in Algeria’s energy strategy as it seeks to capitalize on its position as holder of the world’s third-largest recoverable shale resources.
Samir Bekhti, chairman of energy regulator Alnaft, revealed that technical aspects have been largely agreed upon, with only commercial terms remaining under negotiation. The involvement of these two U.S. oil majors sends a powerful signal about Algeria’s commitment to developing its unconventional energy resources.
Algeria’s strategic advantages include existing gas infrastructure and three pipeline connections to Europe, positioning it favorably against distant suppliers like Qatar. The country aims to replicate America’s shale revolution, which transformed the U.S. from a net importer to one of the world’s biggest gas exporters.
The OPEC member nation is betting heavily on shale development to shore up state revenues, as hydrocarbons account for more than three-quarters of exports. With a growing population of 47 million driving increased energy consumption, new investment has become crucial for the country’s economic stability.
Last year, state-run Sonatrach signed preliminary agreements with both companies to develop resources in the Ahnet and Berkine basins. The regulator is also planning its next bidding round for oil and gas blocks by the end of the first quarter of 2026.
Source: worldoil.com
