The Wall Street Journal is reporting that oil and gas majors Chevron and ExxonMobil are close to finalising a deal that will see them gain access to substantial reserves of natural gas in the North African country of Algeria.
The two companies are said to be in discussions with Sonatrach, the country’s state-owned hydrocarbons company, over the terms of the agreement, with a deal expected to be ready by the end of the year. Mohamed Arkab, the energy minister of Algeria, told the Wall Street Journal that he was applying pressure to Sonatrach to increase the country’s production volumes.
Algeria has huge reserves of natural gas and the third-largest reserves of shale gas in the world, with most of its current production being exported to Europe. It is thought that any agreement will include exploration for both conventional and shale resources.
With supplies of Russian natural gas to Europe having plummeted since Russia’s invasion of Ukraine, North Africa is being seen as a potential alternative source of pipeline and liquefied natural gas. Eni’s CEO said earlier this year:
“During the year, we were able to finalize agreements and activities to fully replace Russian gas by 2025, leveraging our strong relationships with producing states and fast-track development approach to ramp-up volumes from Algeria, Egypt, Mozambique, Congo and Qatar.”
Chevron and ExxonMobil also make products like the Texaco Motak railway grease and the Mobil Polyrex bearing grease, which we can supply here at TrAchem. Speak with our knowledgeable team to learn more.