Algerian Hydrocarbons law
The cabinet will discuss next Wednesday a draft law supplemental to the Hydrocarbons law issued in 2006 which is set to introduce radical changes in the Hydrocarbons sector as well as in the types of deals between Sonatrach and the foreign oil companies operating in Algeria,
Source : https://www.marocafrik.com/english/Algerian-Hydroc...
A presidential source has indicated to Echouorouk that the draft law, that contains 250 articles, is pivotal as it will reduce most of the taxes including that one levied on the benefits garnered by the foreign companies in addition to the part related to the exploitation of the gas rocks.
The 2005 hydrocarbon law introduced by Chekib Khelil the then minister of Energy aimed to liberalise the hydrocarbon sector by relieving Sonatrach of its regualtory functions and allowing international oil and gas companies full ownership of projects rather than the 49/51 majority ownership rule in Sonatrach's favour.
The 2006 Presidential order reversed many of the market liberalistaion measures in the 2005 legislation and included a windfall tax on profits which has been highly unpopular with international oil and gas companies
(IOCs).
The draft law will review the part that deals with the exceptional tax on benefits while the investment rule but the 49/51 majority ownership rule in Sonatrach's favour remains unchanged.
The previous law obliged foreign oil companies like Respol, Total, BP and Anadarko to pay heavy extra taxes retrospecactively on their benefits each time the price of oil on the international markets exceeded $ 30 a barrel.
The Algerian government has responded to the concerns but whether these proposed measures satisfy the IOC's remains to be seen. Algeria's national policy on foreign ownership has raised considerable concerns and has been considered as a break on investment.
The 2005 hydrocarbon law introduced by Chekib Khelil the then minister of Energy aimed to liberalise the hydrocarbon sector by relieving Sonatrach of its regualtory functions and allowing international oil and gas companies full ownership of projects rather than the 49/51 majority ownership rule in Sonatrach's favour.
The 2006 Presidential order reversed many of the market liberalistaion measures in the 2005 legislation and included a windfall tax on profits which has been highly unpopular with international oil and gas companies
(IOCs).
The draft law will review the part that deals with the exceptional tax on benefits while the investment rule but the 49/51 majority ownership rule in Sonatrach's favour remains unchanged.
The previous law obliged foreign oil companies like Respol, Total, BP and Anadarko to pay heavy extra taxes retrospecactively on their benefits each time the price of oil on the international markets exceeded $ 30 a barrel.
The Algerian government has responded to the concerns but whether these proposed measures satisfy the IOC's remains to be seen. Algeria's national policy on foreign ownership has raised considerable concerns and has been considered as a break on investment.
Source : https://www.marocafrik.com/english/Algerian-Hydroc...