ExxonMobil Corp. and Chevron Corp. are nearing a deal to drill for gas in Algeria, the Wall Street Journal reported on Friday. According to Algerian Energy Minister Mohamed Arkab, an agreement with the state energy company Sonatrach could be made before the end of the year.
Chevron told the WSJ that Algeria allowed it access to data regarding three oil-and-gas basins, while Exxon confirmed it is in talks with Sonatrach. Arkab said Algeria is seeking to “increase our volumes” as only 47% of the 1.5 million square km of exploitable fields are in use.
Sonatrach is said to be negotiating agreements with the two companies that would focus on conventional gas and Algeria’s vast reserves of shale gas, believed to be the third largest in the world.
Algeria has three pipeline connections to Europe that give it a competitive advantage over distant suppliers, such as the U.S. and Qatar, that ship liquefied natural gas to Europe.
Energy Minister Mohamed Arkab told WSJ he met with Chevron (CVX) CEO Mike Wirth at a global energy conference in Houston earlier this year, while executives from Sonatrach met with counterparts from Exxon (XOM).
Algeria has been eager for Western energy companies to invest after passing a law in 2019 that offers more generous terms to foreign producers.
Arkab also told WSJ he hopes more European firms will invest in Algeria; Eni (E) has made major investments in the country, but TotalEnergies (TTE) may wavering, the minister said.
Sonatrach is said to be negotiating agreements with the two companies that would focus on conventional gas and Algeria’s vast reserves of shale gas, believed to be the third largest in the world.
Algeria has three pipeline connections to Europe that give it a competitive advantage over distant suppliers, such as the U.S. and Qatar, that ship liquefied natural gas to Europe.
Energy Minister Mohamed Arkab told WSJ he met with Chevron (CVX) CEO Mike Wirth at a global energy conference in Houston earlier this year, while executives from Sonatrach met with counterparts from Exxon (XOM).
Algeria has been eager for Western energy companies to invest after passing a law in 2019 that offers more generous terms to foreign producers.
Arkab also told WSJ he hopes more European firms will invest in Algeria; Eni (E) has made major investments in the country, but TotalEnergies (TTE) may wavering, the minister said.
