(Reuters) -Chevron Corp has opened talks with Algeria to allow the U.S. oil firm to undertake energy exploration in the North African country, the Wall Street Journal reported on Monday.
The company has sent representatives in government relations, security and business development to the capital Algiers, some of whom have met Algerian officials in the past two months, the report added, citing people familiar with the matter.
Chevron (NYSE:CVX) had in 2020 signed with state-owned Sonatrach a memorandum of understanding to enhance the U.S. company's ability to evaluate prospective hydrocarbon plays in the country.
A spokesperson for Chevron declined to comment on specific business opportunities, but 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.
Algeria's energy sector rebounded 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 a shot in the arm and 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.