Exxon and Chevron in talks to Develop Shale Gas Reserves in Algeria

Exxon and Chevron are in talks with Algerian officials over potential deals to develop shale gas reserves in the country, according to industry sources.

Sources said that the topic was discussed during recent meetings in Algeria that were attended by delegations from both companies. If deals are announced, they are likely to have investment values exceeding a billion dollars, sources said.

With estimated reserves of 20 trillion cubic metres, Algeria has the world’s third-largest shale gas deposits, behind those of China and Argentina.

As talks have progressed between the US oil companies, Algeria’s national oil and gas company and government officials, both sides have been seeking assurances, according to sources.

One source said: “Exxon and Chevron are both concerned about potential disruption from groups of people protesting over environmental issues.

“They want assurances that any future projects to develop shale gas reserves will not be disrupted by social unrest.”

At the same time, Sonatrach and Algerian government officials have sought assurances from the US oil companies that they will limit the environmental impact from shale development projects.

Chevron previously signed a heads of agreement relating to the development of Algerian hydrocarbon resources in 2024.

Last month, Algeria’s Minister of Energy Mohamed Arkab said that he is expecting Sonatrach to sign an agreement with Chevron for the development of “a large hydrocarbon deposit” before the end of the year.

He also stated that the country anticipates signing contracts with ExxonMobil by the end of the year for the development of “very important fields” that will contribute to Algeria’s natural gas production.