Summary:

On 22 January 2025, Algeria’s National Development Hydrocarbon Agency (ALNAFT), and US energy company Chevron, signed a deal to explore potential offshore energy opportunities. 

The agreement, which was signed in presence of the Algerian Minister of Energy, Mining and Renewables, the General Director of Sonatrach, and officials from Chevron and ALNAFT, will last for two years. The deal can be renewed similar to an exploration agreement signed with Italian firm Eni, which was extended to August 2025.  

Previously on 24 May 2024, Sonatrach signed a hydrocarbon deal with another US energy firm, ExxonMobil. This deal included plans to exploit two large gas fields in the Ahnet and Gourara basins in southern Algeria. 

The two US energy giants had previously expressed their intention to foster energy cooperation with Algeria during the US-Algeria Business Forum in September 2024. 

Meanwhile, the Commander of US Africa Command (AFRICOM), General Michael Langley, signed a Memorandum of Understanding (MoU) laying out plans for military cooperation with the Algerian Minister of National Defense, General Saïd Chanegriha. 

AFRICOM announced the MoU, emphasizing that the agreement “illustrates the two countries’ shared vision to strengthen regional and international peace and stability through strategic dialogue.” 

Two weeks earlier, Algerian Prime Minister Nadir Larbaoui met with US Ambassador Elizabeth Moore Aubin to discuss bilateral relations and review current regional and international issues of mutual concern. 

Outlook: 

The recent agreements between US companies and military officials and Algeria display increasing cooperation between the two countries which is likely to benefit other US businesses willing to explore investment opportunities in Algeria. 

The fact that General Saïd Chanegriha congratulated US President Donald Trump for his election during his meeting with the AFRICOM Commander signals an increased willingness on the part of the Algerian government to cooperate with the Trump administration.  

Favoring US and Western energy companies over Russian firms to explore new energy resources also indicates a strategic choice by Algeria to promote its relations with the US and Europe amidst its ongoing rivalry with Morocco which continues to attract interest from Western investors. 

Additionally, the recent agreement with the US comes days after rumors spread over Algeria’s potential purchase of Russian Su-57 fighter jets, thus paving the way for a shift in Algeria’s position.  

Some observers suggest that Algeria is trying to balance its partnership with Russia as the latter is ignoring Algerian interest in the Sahel and supporting hostile governments.  

Western officials and companies are likely to seize the currently undefined and, perhaps, worsening relationship between Russia and Algeria to expand their influence and opportunities in the country. However, it is still to be seen how President Trump’s new Secretary of State, Mark Rubio, will manage relations, especially as he had previously called for sanctions on Algeria for purchasing Russian weapons. The new US administration’s as-of-yet undefined US foreign policy toward Algeria will play a significant role in determining the depth and impact of any energy investments and military cooperation.  

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