Chevron has signed a tentative deal to explore the vast shale oil and gas potential in Libya.

The move is part of a wider plan by the US supermajor to rejuvenate its upstream portfolio, particularly in frontier plays, having already been successful in Libya's recent licensing round.

Chevron has signed a memorandum of understanding with Libya's state-owned National Oil Corporation (NOC) to jointly evaluate unconventional hydrocarbon resources.

Their goal is to assess the potential of the Sirte, Murzuk and Ghadames basin, with technical teams from both parties analysing available data and evaluating potential opportunities to develop resources.

According to NOC, Libya is estimated to hold a potential 123 trillion cubic feet of unconventional gas resources, and some 18 billion barrels of oil resource.

NOC chairman Masoud Suleman said the MoU could pave the way for other similar agreements.

Chevron was unable to comment because the company is in a closed period ahead of reporting its quarterly results.