Algeria-based oil company Sonatrach signed a memorandum of understanding (MoU) with U.S. energy giant Chevron, marking Chevron’s official entry into the Algerian market to develop two oil and gas fields in the southeast of the country.
The signing ceremony took place at Sonatrach’s headquarters in Algiers, attended by Sonatrach CEO Rachid Hachichi and Chevron’s Vice President of Exploration Liz Schwarze.
Hachichi noted that the MoU provides a platform for discussions on opportunities to develop identified oil and gas resources in the Ahnet Basin (Illizi Province) and the Berkine Basin (Ouargla Province) in southeastern Algeria.
A few weeks ago, Sonatrach signed an agreement with another American energy giant, ExxonMobil, to develop oil and gas fields in the southeast and southwest of the country.
Energy and Mines Minister Mohamed Arkab recently stated that Sonatrach aims to produce 200 billion cubic meters of natural gas, with half of this volume intended for export by 2027.
Algeria, a member of OPEC, produces one million barrels of crude oil per day. However, its economy is heavily reliant on oil and gas revenues, which account for nearly 90% of its foreign currency income.
The country is actively seeking to attract more foreign investment into its hydrocarbons sector, touting its 2019 Hydrocarbons Law, which includes significant incentives and facilitation measures for foreign companies.
The International Energy Agency (IEA) ranks Algeria as having the world’s third-largest shale gas reserves, with confirmed reserves exceeding 20 trillion cubic meters.
This strategic partnership with Chevron is expected to bolster Algeria’s efforts to enhance its energy sector and diversify its economic base.
