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August 17, 2025 | 3 weeks ago

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Algeria: Major shale gas agreement with two US companies

The Algerian shale gas sector is on the verge of concluding a major agreement with ExxonMobil and Chevron, two US energy giants, which President Abdelmadjid Tebboune received recently to discuss investment opportunities in this strategic sector.

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Algeria ranks third in the world in terms of recoverable shale gas reserves, estimated at 707 trillion cubic feet, according to data from the Energy Platform research department.

This potential naturally attracts the world's largest energy companies.

The president of the National Agency for the Development of Hydrocarbon Resources, Samir Bakhti, confirmed that negotiations with ExxonMobil and Chevron reached a decisive stage, with most technical aspects having been validated, despite certain commercial issues remaining to be finalized.

In 2024, the national company Sonatrach had already signed a preliminary agreement with these two companies to develop hydrocarbons in the Ahnet basin.

This cooperation could now extend to shale gas.

The expected investment is estimated at $1 billion and could be awarded directly, without a tender process, to benefit from the expertise and financing capabilities of these major US companies.

Despite the considerable opportunities, the project continues to face environmental and social concerns.

Large-scale protests in In Salah in 2015 brought pilot operations to a halt, as the population feared groundwater pollution due to hydraulic fracturing. Algeria is now seeking to reassure the public that the environmental impact of future operations will be limited.

If the agreement is finalized, it will strengthen Algeria's position as a key supplier of gas, particularly for Europe, which is seeking to reduce its dependence on Russian gas.

August 17, 2025 | algeria-logo

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