Energy Policy & Regulation

Algeria is moving closer to finalizing agreements with American energy giants ExxonMobil and Chevron to develop its significant natural gas reserves, including shale. According to Bloomberg, Samir Bekhti, chairman of Algeria’s energy regulator Alnaft, confirmed that while the commercial aspects are still under negotiation, the technical terms of the deals are nearly finalized. These agreements signal a major step forward in Algeria’s efforts to boost energy production and attract foreign investment into its gas sector.

In 2024, Algeria’s state-owned energy company Sonatrach signed preliminary deals with both Exxon and Chevron to jointly develop natural gas and share gas reserves in the Ahnet and Berkine basins, located in the southern and eastern regions of the country. These areas are rich in hydrocarbons and are seen as critical to expanding Algeria’s production capacity. Sonatrach also entered into a separate exploration agreement with China’s Sinopec to tap into another shale-rich region, highlighting Algeria’s openness to working with international partners across continents.

Bekhti emphasized that Algeria’s approach is to collaborate with experienced players in the global energy market, regardless of their country of origin. “We want to unlock this potential and start working with those who have experience, regardless of whether they are Chinese, American, or European,” he said. This inclusive strategy comes as Algeria seeks to leverage foreign expertise to develop its underutilized shale reserves and enhance upstream capabilities amid rising global demand for gas.

As part of its broader energy strategy, Alnaft is preparing to launch a new bidding round for oil and gas blocks by the end of the first quarter of next year. This would be the first such round in more than a decade, with the last one awarding licenses to Eni (Italy), TotalEnergies (France), and QatarEnergy. With the world’s third-largest recoverable shale resources, according to the U.S. Energy Information Administration, Algeria is positioning itself as a key player in the global gas market while continuing to implement upstream reforms and diversify its economy.