Algeria has entered into a groundbreaking partnership with U.S. energy giant Chevronto explore untapped offshore oil reserves in the Mediterranean.
Announced by Algeria’s Ministry of Energy, this two-year collaboration involves the national hydrocarbon agency, Alnaft, and Chevron North Africa.
Both parties will undertake a comprehensive study of Algeria’s maritime areas, aiming to assess the potential for offshore oil production. This marks a pivotal moment in Algeria’s strategy to enhance its hydrocarbon reserves and modernize its energy sector.
The agreement was formalized in Algiers on January 22, 2025, during a high-profile ceremony attended by key stakeholders.
Among them were Mourad Beldjehem, Director of Alnaft; Luca Rigo de Righi, Chevron North Africa’s Director of Major Projects; Algeria’s Energy and Mines Minister, Mohamed Arkab; and Sonatrach CEO, Rachid Hachichi.
Their presence underscored the significance of this collaboration in advancing Algeria’s energy objectives.
This initiative aligns with Algeria’s broader vision of attracting premium foreign investment and leveraging global expertise to diversify its energy resources.
Historically dependent on onshore hydrocarbon reserves, Algeria is now seeking to expand into offshore exploration, a move expected to enhance both energy security and economic resilience.
For Chevron, this venture provides a strategic foothold in North Africa, a region whose proximity to Europe makes it a valuable hub for energy projects.
It supports Chevron’s global agenda to diversify operations and explore underutilized regions. Chevron has committed to employing advanced technologies and innovative geological analyses in this initiative, reinforcing its focus on sustainable and forward-thinking energy solutions.
This partnership could set a benchmark for future exploration efforts, with modern technology playing a central role in evaluating Algeria’s offshore potential.
Chevron’s technical expertise and global experience are poised to bring transformative capabilities to Algeria’s exploration program.
Algeria’s offshore ambitions are not entirely new. In 2018, Sonatrach collaborated with Total (France)and ENI (Italy) to assess offshore potential, but these projects did not transition into active development.
The agreement with Chevron could signify a turning point, given the Mediterranean’s untapped hydrocarbon wealth. While challenges such as high development costs and environmental concerns have previously deterred progress, this collaboration may overcome these barriers through innovative approaches.
The Chevron-Algeria agreement reflects Algeria’s evolving energy strategy, which now emphasizes partnerships beyond Europe.
By expanding its geopolitical relationships, Algeria aims to enhance its competitiveness in the international energy market and solidify its role as a global energy player.
With hydrocarbons accounting for over 90% of Algeria’s foreign exchange earnings, the stakes are high for ensuring this partnership translates into tangible benefits.
Success in this offshore endeavor could open the door to additional exploration and development projects, further diversifying Algeria’s energy portfolio.
It would also strengthen economic stability, increase energy independence, and provide significant benefits to local communities through job creation and new opportunities in the energy sector.
As Algeria steps into uncharted waters with Chevron, the outcome of this collaboration could reshape its energy landscape. If successful, it will reinforce Algeria’s position as a key player in the global energy market while setting the stage for a more dynamic and sustainable energy future.
