Adoption of hydrocarbon law
14 Nov 2019
The new hydrocarbon law, approved by the National Assembly on 14 November 2019, introduced the following changes, among others
• Taxes and other duties have been abolished where the entity is established for the benefit of the state and local authorities.
• Foreign workers in the refining and petrochemical fields will be exempted from social security tax, provided they continue to contribute to a social security fund in their country of origin.
• The duration of a hydrocarbon contract includes a 30-year exploration and exploitation period and may be extended for a maximum period of 10 years.
• The oil and gas supply chain must include provisions that give preference to Algerian companies for the supply of goods and services produced in Algeria, subject to their competitiveness.
• It reintroduces production sharing agreements and reduces the complexity of the previous petroleum framework by simplifying the structure of the fiscal terms. Also, royalty/tax participation contracts or risk service agreements will be available. Foreign countries' interest will continue to be limited to a 49% participation stake and foreign entities will need to pay surface tax, royalty, hydrocarbon revenue tax, and additional income tax.
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Type:
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Treatment and operation (Operational conditions)
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Promotion and facilitation (Investment incentives)
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Industry:
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Primary (Mining and quarrying)
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Sources:
