Chevron and Exxon Plan to Enter Gas Production Projects in Algeria This Year
Algeria’s State Company Sonatrach Plans to Sign an Agreement on the Development of a Large Hydrocarbon Deposit with Chevron, Said the Country’s Minister of Energy Mohamed Arkab
The country also expects to sign contracts with ExxonMobil by the end of the year for the development of very important fields that will significantly contribute to Algeria’s natural gas production, he added.
Algeria’s gas sector has seen a boom since 2022 due to increased demand for methane from European consumers. Currently, Algeria supplies 14% of the EU’s methane demand, both as pipeline gas and as liquefied natural gas.
Algeria has some of the largest oil and gas reserves in Africa, but production had long been constrained by inefficient management and lack of investment until major hydrocarbon and investment law reforms were implemented in 2020. Arkab said that the new laws have improved the investment climate in Algeria and helped the country secure deals with major companies such as Equinor, Eni, and Occidental Petroleum.
The minister said that companies have already made eight major discoveries that will help increase methane production in the country to 200 billion cubic meters per year, up from the current 137 billion cubic meters, according to Bloomberg.
