Algeria is preparing to finalise a landmark energy agreement with US oil giants Exxon Mobil and Chevron, in a move that could reshape the country’s role in global gas markets.
According to Bloomberg, Algiers is in the final stages of negotiations with the two corporations to jointly develop its vast gas resources, including shale reserves. If concluded, it would mark the first large-scale exploitation of unconventional gas in Algeria.
Hydrocarbons remain the backbone of the Algerian economy, accounting for more than three-quarters of exports and providing crucial public revenue. By investing in shale gas, authorities aim to diversify production, secure long-term supply, and reinforce the country’s status as one of the world’s leading energy exporters.
Algeria’s geographical location further boosts its appeal. Positioned on Europe’s doorstep and already supported by a well-established export infrastructure, the country is viewed as a natural partner for European markets seeking energy stability.
In an era marked by fluctuating prices and geopolitical uncertainty, a deal with Exxon and Chevron could strengthen Algeria’s position as a reliable supplier to the continent.
“Hydrocarbons account for more than three-quarters of its exports and are a vital source of public revenue,” reports noted, highlighting the government’s determination to sustain the sector while broadening investment horizons.
If successful, the partnership would open a new chapter in energy cooperation between Algeria and leading international companies, with joint ventures extending to shale gas and other unconventional resources.
However, the project is likely to spark debate.
Environmental groups and sections of public opinion have long raised concerns over the ecological risks associated with shale gas extraction. How the government balances economic ambitions with environmental safeguards will be closely watched both at home and abroad.
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