Chevron and ExxonMobil are in advanced talks with Algeria on a major deal that could unlock one of the world’s largest shale gas reserves, potentially reshaping energy supplies to Europe.
According to reports, the two U.S. oil giants are nearing agreements that would grant them access to Algeria’s vast unconventional gas deposits, positioning the country as a stronger player in the global energy market. Algeria is estimated to hold more than 3,400 trillion cubic feet of shale gas, with around 700 trillion cubic feet considered recoverable — the third-largest such reserve worldwide after China and Argentina.
Building on Existing Ties
Chevron has already taken steps to strengthen its presence in Algeria, having signed agreements in 2024 with state-owned Sonatrach and later with the national agency ALNAFT to explore offshore opportunities. Moving into shale development would represent the next phase, opening the door to multi-billion-dollar projects and new joint ventures.
Europe’s Energy Needs
For both companies, Algeria’s location and infrastructure make it a strategic hub. With Europe actively reducing reliance on Russian energy, Exxon and Chevron see the North African nation as a key partner in providing stable supplies. Algeria is working to lift production from roughly 137 billion cubic meters annually to as much as 200 billion, a target that could be supported by foreign investment and technology.
Risks and Challenges
The push into shale, however, comes with hurdles. Fracking operations require significant water resources and have raised environmental concerns in Algeria before, most notably sparking protests in 2015. Both Exxon and Chevron bring decades of global experience in unconventional energy, which could help them navigate technical, environmental and community challenges.
Strategic Significance
If finalized, the agreements would mark a rare opening of a new shale frontier outside North America, reinforcing Chevron and Exxon’s roles as global suppliers and deepening their ties with Algeria. Beyond boosting output, the deal could reshape Europe’s energy security landscape and cement the companies’ influence in a region vital to global fuel flows.
