Algeria, which is estimated to have 707 trillion cubic feet of recoverable shale gas, is seeking to replace Russian gas supplies.
US oil giant Chevron is in talks to sign a deal with Algeria to undertake gas exploration, the Wall Street Journal (WSJ) reported.
The decision comes as Algeria seeks to replace gas supplies from Russia due to Western sanctions against Moscow following the invasion of Ukraine.
In addition, Chevron has appointed consultants to assess the country's shale and off-shale gas resources and contractual terms, the news agency reported, citing people close to the matter.
According to the Energy Information Administration, Algeria has 707 trillion cubic feet of recoverable shale resources.
A Chevron spokeswoman said the company had previously signed an agreement with the state agency to access data on three of Algeria's largest natural gas reservoirs, namely the Ahnet, Gourara and Berkine basins.
« L’Algérie possède un système pétrolier de classe mondiale, avec un potentiel important pour l’exploration pétrolière et gazière conventionnelle et non conventionnelle ».
In 2020, Chevron signed a memorandum of understanding with state-owned Sonatrach to explore natural gas opportunities in Algeria. However, work had been slow until recently.
Le PDG de Chevron, Mike Wirth, a déclaré aux analystes lors des résultats annuels de la société le mois dernier : « La région a besoin de gaz, à la fois au niveau régional au Moyen-Orient, mais aussi évidemment d’options pour essayer d’acheminer ce gaz vers l’Europe. »
Chevron, which plans to invest $17 billion in energy projects by 2023, is also in talks to develop a 600,000 barrel per day field in Iraq.