Chevron in Talks with Algeria to Explore Hydrocarbons
- February 7, 2023
- Posted by: Quatro Strategies
- Category: Energy
U.S. energy major Chevron has started talks with Algeria to undertake hydrocarbon exploration projects in the North African country. The company’s representatives in government relations, security and business development have traveled to Algeria to meet government officials in the past two months.
Chevron had signed with state-owned Sonatrach in 2020 a memorandum of understanding to enhance the its ability to evaluate prospective hydrocarbon opportunities in the country.
Chevron, while not giving specifics, said the company had an agreement with Algeria’s state agency as it holds and manages information related to the Ahnet, Gourara and Berkine Basins, three of the country’s biggest natural-gas reservoirs.
Chevron plans to spend $17 billion on energy projects this year.
Algerian energy sector had grown in 2022 following Russia’s invasion of Ukraine, and the issuance of a new law governing investment after years of decline over the past decade.
Europe’s attempt to wean itself off Russian gas has provided the country with increased export opportunities. Algerian supplies now account for more than a quarter of gas demand in Spain and Italy, each.
Sonatrach is the third-biggest exporter to Europe after Russia and Norway.
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