Amended New Energy Law for Algeria in 2012 ?
Algeria will amend its hydrocarbons law before the end of the year to attract more foreign investment an adviser to the country’s energy minister said on Thursday.
Source : https://www.marocafrik.com/english/Amended-New-Ene...
“The amendments of Algeria’s hydrocarbon law will introduce tax incentives that aim to boost offshore exploration and attract foreign companies that can bring technology know-how for the development of unconventional reserves,” adviser Ali Hached told delegates at a conference according to Reuters. The 49/51 share ownership of oil and gas projects with international oil companies making Sonatrach the majority owner was passed in 2009 reversing the earlier hydrocarbon law of 2005.
International oil and gas exploration companies have raised this issue together with the question of high taxation but Abdelhamid Zerguine,Sonatrach’s Chief Executive Officer confirmed to Reuters that the situation regarding majority share holding by Sonatrach and taxation would not change.The accent would be on one to one negotiations rather than tenders with international companies.
The government has also raised Sonatrach’s budget for investments in the next five years to $80 billion, up from $68 billion, Zerguine said, adding this included $12 billion for unconventional resources. Production of Shale gas could start in three years according to Abdelhamid Zerguine Reuters reported.
The Hydrocarbon law introduced in 2005 allowed international companies 100 per cent ownership and its reversal caused consternation at the time. There are questions as to whether Algeria has sufficient new projects to justify further oil and gas investment by international majors at a time when consumption may be dented by a lessening of demand due to the global economic downturn.
Algeria's reserves of oil and gas plus its proximity to the European market with several gas pipelines already installed should be enough to guarantee its place as an important source of hydrocarbons for years to come despite difficult market conditions. Algeria has always been resolute in protecting its oil and gas resources and suffered severely when the oil price dropt in the 1980's. Repatriation of profits by international companies in Algeria was criticised recently at a high level in Algeria and a more understanding policy on these issues would be welcomed by the international companies concerned.
International oil and gas exploration companies have raised this issue together with the question of high taxation but Abdelhamid Zerguine,Sonatrach’s Chief Executive Officer confirmed to Reuters that the situation regarding majority share holding by Sonatrach and taxation would not change.The accent would be on one to one negotiations rather than tenders with international companies.
The government has also raised Sonatrach’s budget for investments in the next five years to $80 billion, up from $68 billion, Zerguine said, adding this included $12 billion for unconventional resources. Production of Shale gas could start in three years according to Abdelhamid Zerguine Reuters reported.
The Hydrocarbon law introduced in 2005 allowed international companies 100 per cent ownership and its reversal caused consternation at the time. There are questions as to whether Algeria has sufficient new projects to justify further oil and gas investment by international majors at a time when consumption may be dented by a lessening of demand due to the global economic downturn.
Algeria's reserves of oil and gas plus its proximity to the European market with several gas pipelines already installed should be enough to guarantee its place as an important source of hydrocarbons for years to come despite difficult market conditions. Algeria has always been resolute in protecting its oil and gas resources and suffered severely when the oil price dropt in the 1980's. Repatriation of profits by international companies in Algeria was criticised recently at a high level in Algeria and a more understanding policy on these issues would be welcomed by the international companies concerned.
Source : https://www.marocafrik.com/english/Amended-New-Ene...