Chevron has entered into a new agreement with National Oil Corporation to examine the country’s large unconventional oil and gas prospects across three major sedimentary basins.

The understanding, signed as a memorandum of cooperation, will see technical experts from both sides assess shale resource opportunities in the Sirte Basin, Murzuk Basin and Ghadames Basin.

The move signals Chevron’s renewed interest in frontier exploration as the company seeks to strengthen its upstream portfolio in emerging plays. The US energy giant had earlier secured acreage in Libya’s latest licensing round, and this new step deepens its engagement with the North African producer.

According to estimates released by Libya’s NOC, the country may hold as much as 123 trillion cubic feet of unconventional gas and around 18 billion barrels of oil resources trapped in shale formations.

NOC chairman Masoud Suleman said the agreement could open the door for further partnerships focused on unlocking Libya’s unconventional reserves.

Chevron declined to offer immediate comments, citing restrictions ahead of its upcoming quarterly earnings report.

If the study confirms commercial viability, the collaboration could mark a significant step toward developing shale resources in Libya, a country traditionally known for its conventional oil production.