U.S. energy companies are deepening their engagement with North Africa as countries seek foreign capital, technology and expertise to expand oil and gas production and modernise energy infrastructure. ExxonMobil has signed a new exploration and production agreement with Libya’s National Oil Corporation, while U.S. engineering and project-management company KBR is exploring a broader partnership with Algeria’s Sonatrach. The two moves point to renewed commercial interest in a region with some of Africa’s largest hydrocarbon resources and established energy industries.
For ExxonMobil, Libya offers access to a resource base that remains relatively underdeveloped after years of conflict, disrupted investment and infrastructure constraints. Libya holds about 48.4 billion barrels of proven oil reserves, the largest in Africa, and the government is seeking international oil companies that can bring capital and technical capabilities to revive and increase production. ExxonMobil’s agreement gives it rights to explore and develop hydrocarbons in selected concession blocks, although the specific blocks were not fully disclosed in the reported announcement.
The deal also comes as other international majors increase their involvement in Libya. TotalEnergies and ConocoPhillips have been linked to a reported $20 billion, 25-year agreement with Waha Oil aimed at modernising infrastructure and increasing production, while Chevron has also reported a memorandum of understanding with Libya. For Libya, the return of major international operators is tied to the broader challenge of turning large reserves into sustained production, requiring investment not only in wells but also in infrastructure, technology and field development.
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Algeria presents a different opportunity for U.S. companies. Rather than entering a largely underdeveloped upstream market, KBR is discussing a deeper relationship with Sonatrach that could include a dedicated national framework for engineering and project management. Potential areas include upstream development, production enhancement, refining, petrochemicals and advanced energy technologies. For Algeria, the partnership could bring additional engineering capacity and international expertise into a sector dominated by its state energy company.
Together, the moves show how North Africa is attracting U.S. companies through two different entry points: Libya through its enormous conventional resource base and need for investment, and Algeria through the scale of its existing energy industry and demand for engineering and project-management capabilities. The opportunity for U.S. firms will depend on whether these agreements develop into drilling, production, infrastructure and major project contracts. For North African producers, the objective is more immediate—turn international interest into higher output, modernised infrastructure and the capital and technology needed to expand their energy sectors.
