Algeria has signed a strategic agreement with U.S. energy giant Chevron to assess potential offshore oil reserves in the Mediterranean, marking a significant step in the country’s energy exploration efforts. Announced on Wednesday by the Ministry of Energy, the two-year partnership involves Algeria’s national hydrocarbon agency, Alnaft, and Chevron North Africa. It aims to conduct a comprehensive study to evaluate the nation’s offshore oil potential, which could lead to further exploration and development projects.

The agreement reflects Algeria’s focus on unlocking new hydrocarbon resources and strengthening its energy sector. In a statement, Alnaft emphasized that this collaboration is part of its broader strategy to attract high-quality foreign investments and enhance technical expertise in offshore exploration. Mourad Beldjehem, president of Alnaft, reiterated this sentiment, noting that the deal represents a significant milestone in Algeria’s efforts to expand its offshore energy portfolio.

This is not Algeria’s first initiative to explore its offshore energy potential. In 2018, the state-owned hydrocarbon company, Sonatrach, entered into agreements with France’s Total and Italy’s ENI to evaluate the country’s offshore oil reserves. These earlier efforts laid the groundwork for Algeria’s renewed interest in offshore exploration, driven by the need to diversify and strengthen its energy production capabilities.

As Africa’s largest country, Algeria holds substantial untapped hydrocarbon reserves, making the partnership with Chevron a vital move in positioning the nation as a competitive player in the global energy market. Hydrocarbons remain the backbone of Algeria’s economy, accounting for over 90 percent of its foreign exchange earnings. The development of offshore resources could further bolster the country’s economic stability and energy independence.

Chevron’s involvement brings advanced technical expertise and global experience to Algeria’s exploration efforts. Known for its extensive operations across various geographies, Chevron’s entry into Algeria signifies growing confidence in the country’s energy potential and its commitment to fostering a conducive environment for foreign investors.

The agreement also underscores the increasing global interest in offshore exploration as energy companies seek new reserves to meet rising demand. For Algeria, unlocking its offshore potential could open up new opportunities for economic growth, employment, and enhanced energy security. The Mediterranean, though underexplored compared to other regions, is considered a promising area for oil and gas discoveries, and Algeria aims to capitalize on this prospect through strategic partnerships.

By collaborating with Chevron, Algeria is taking a bold step toward diversifying its energy production and securing its position in the evolving global energy landscape. If successful, this initiative could pave the way for future exploration and development projects, ensuring long-term benefits for the country’s economy and energy sector.