American oil company Chevron, the second in the West regarding market capitalization, has resumed talks on cooperation with Algeria, writes The Wall Street Journal with reference to informed sources.

The magazine recalls that in 2020, Chevron signed a memorandum of cooperation with the local state of Sonatrach, but until recently the interaction was slow. Now Chevron may invest in Algeria in exchange for an energy exploration deal in the country. Chevron oil company stocks are rising on this news. 

Over the past two months, according to WSJ sources, the U.S. has sent government relations, security, and business development representatives to Algeria, some of whom have met with Algerian officials. Also, the company has hired consultants to assess shale and non-shale gas reserves in Algeria, the sources said.

The WSJ notes that Algeria has the world’s third-largest recoverable shale resources at 707 trillion cubic feet, according to the U.S. Energy Information Administration (EIA). That’s less than China and Argentina, but more than the U.S., at 623 trillion cubic feet. Developing these resources is important for Chevron as part of replacing the share of Russian gas in European consumption. Chevron also hopes to use technology developed in the U.S. shale deposits to develop the Algerian fields, the newspaper said.

A Chevron spokesperson declined to comment on the details of the company’s business, saying only that the company has agreements with the state agency for access to information on the three largest gas fields in Algeria in the Ahnet, Gourare and Berkin basins.

“Algeria has a world-class oil system with significant potential to explore conventional and unconventional oil and gas fields,” the spokesperson said.

Earlier we reported that the U.S. saw market manipulation in rising gas prices.