TTE - Exxon Chevron near deals to drill in gas-rich Algeria - WSJ

2023-06-02 11:10:08 ET

Exxon Mobil ( NYSE: XOM ) and Chevron ( NYSE: CVX ) are in advanced talks with Algeria on a deal that would allow the companies to drill for the first time in the country, The Wall Street Journal reported Friday.

State oil and gas company Sonatrach is said to be negotiating agreements with the two companies that would focus on conventional gas and Algeria's vast reserves of shale gas, believed to be the third largest in the world.

Algeria has three pipeline connections to Europe that give it a competitive advantage over distant suppliers, such as the U.S. and Qatar, that ship liquefied natural gas to Europe.

Energy Minister Mohamed Arkab told WSJ he met with Chevron ( CVX ) CEO Mike Wirth at a global energy conference in Houston earlier this year, while executives from Sonatrach met with counterparts from Exxon ( XOM ).

Algeria has been eager for Western energy companies to invest after passing a law in 2019 that offers more generous terms to foreign producers.

Arkab also told WSJ he hopes more European firms will invest in Algeria; Eni ( E ) has made major investments in the country, but TotalEnergies ( TTE ) may wavering, the minister said.

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