Amends hydrocarbons law

The amendment offers foreign energy firms easier tax terms and other incentives. The amendments offer incentives to foreign companies wishing to invest in unconventional resources such as shale gas and shale oil and will link taxes on partners of state energy firm Sonatrach to profit instead of turnover. Investors are set to be granted prospecting licences for up to 11 years and exploitation licences of 40 years for shale gas and 30 years for shale oil. Conventional energy licence terms remain unchanged at seven years for prospecting and 25 years for exploitation, with a five-year supplementary period for natural gas deposits.

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Primary (Mining and quarrying)

• Sources:

  • Reuters, Algeria parliament approves amendments to energy law, http://www.reuters.com/article/2013/01/21/sahara-crisis-investment-idUSL6N0AQ8XB20130121, 21 Jan 2013