Algeria is on the verge of finalizing agreements with U.S. oil majors ExxonMobil and Chevron to tap into its shale gas reserves, according to Samir Bekhti, chairman of energy regulator Alnaft. While technical details have largely been settled, commercial terms are still being negotiated.
The country is betting on shale gas to boost state revenue amid rising domestic energy needs and limited economic diversification. Hydrocarbons continue to make up over 75% of Algeria’s exports, highlighting the importance of new investments.
Chevron expressed enthusiasm for potential collaboration, pointing to Algeria’s substantial oil and gas resources and the opportunity to apply its expertise. ExxonMobil has not made a statement.
Algeria’s shale appeal stems from both its vast reserves—ranked third globally behind China and Argentina—and its existing infrastructure, as well as its proximity to Europe. The nation’s three pipeline links to the continent provide an advantage over LNG exporters farther afield.
Bekhti noted that while the U.S. took about 15 years to develop a successful shale industry, Algeria could move faster thanks to existing infrastructure. Projects near established facilities could take two to three years from initial assessments to production.
However, the shale sector faces challenges. Most reserves are located far from northern cities, previous projects were halted over environmental concerns, and legal and fiscal issues remain.
Algeria has already made moves to attract foreign investors. Sonatrach, the state-run energy company, signed preliminary agreements with Exxon and Chevron to explore the Ahnet and Berkine basins last year, while Sinopec joined in July for other shale-rich areas. Senior executives from Exxon and Chevron also met with Algerian officials in Houston to advance commercial negotiations.
Looking ahead, Alnaft plans a new bidding round for oil and gas blocks in early 2026, following a first tender in over a decade that attracted companies like Eni, TotalEnergies, and QatarEnergy.
Algeria aims to convert its shale potential into production to strengthen exports and secure a larger role in the global energy market.
