Exxon Mobil and Chevron are prominent multinational oil and gas companies with extensive experience and a global presence in the energy sector. Both companies have now entered advanced discussions with Algeria, signaling their interest in accessing the country’s oil fields.
Algeria, a significant player in the global energy market, possesses substantial oil and gas reserves. The potential agreement between the Algerian state oil and gas company, Sonatrach, and Exxon Mobil and Chevron aims to enable drilling operations in the country. The focus of the discussions encompasses exploring conventional gas reserves as well as the vast shale gas resources in Algeria, which are ranked as the third largest worldwide.
Algeria’s advantageous position lies in its three pipeline connections to Europe, which provides a competitive advantage over distant suppliers like the United States and Qatar. This infrastructure allows Algeria to transport liquefied natural gas efficiently to European markets, enhancing its attractiveness as a potential investment destination for major oil and gas companies.
Algeria has actively pursued foreign investment from Western energy companies, exemplified by the enactment of a law in 2019 that offers more favorable terms to international producers. This move aimed to attract greater participation from global oil and gas giants and promote the development of Algeria’s energy resources.