Wedoany.com Report-Aug. 18, Algeria is close to finalizing agreements with ExxonMobil and Chevron to develop its extensive gas reserves, including shale, for the first time, as announced by Samir Bekhti, chairman of the energy regulator Alnaft, on August 15, 2025. The deals aim to leverage the country’s significant hydrocarbon resources to boost state revenue.

“The technical aspects have more or less been agreed upon, but the commercial alignment is still under negotiation and will soon be finalized,” Bekhti said in an interview. He added: “Attracting these two major U.S. companies sends a strong signal.”

With hydrocarbons accounting for over 75% of Algeria’s exports, the nation is focusing on shale gas to meet rising energy demands from its 47 million population. The country holds the world’s third-largest recoverable shale resources, trailing only China and Argentina, according to the U.S. Energy Information Administration. Its proximity to Europe and existing infrastructure, including three pipeline connections, make it an attractive partner for international firms compared to distant suppliers relying on liquefied natural gas shipments.

“Algeria holds a world-class petroleum system with the potential for significant oil and gas resources,” Chevron stated. “We are excited by the prospective synergies and relationship we could create in Algeria.” ExxonMobil did not provide a comment.

Algeria aims to replicate the U.S.’s success in shale development, which transformed it into a major global exporter. “The U.S. did not reach this level of performance overnight. It took them no less than 15 years,” Bekhti noted. “For Algeria, it could take less time because the infrastructure, facilities, and pipeline network are already in place.”

For projects near existing infrastructure, Bekhti explained: “We will just need to collect preliminary data, carry out initial tests, and connect to the facilities. This is a two- to three-year process.” However, challenges remain, including high costs of drilling in the southern desert and past community concerns about water contamination, which halted shale efforts in 2016. “We need to master the economic aspects of unconventional energy,” Bekhti emphasized.

In 2024, Algeria’s state-owned Sonatrach signed preliminary agreements with ExxonMobil and Chevron for the Ahnet and Berkine basins, following a 2019 law to encourage investment. In July 2025, Sonatrach also partnered with China’s Sinopec Group for another shale-rich area. “We want to unlock this potential and start working with those who have experience, regardless of whether they are Chinese, American, or European,” Bekhti said.

Alnaft plans its next oil and gas block bidding round for Q1 2026, following a recent tender that awarded contracts to companies like Italy’s Eni, France’s TotalEnergies, and QatarEnergy.