This article first appeared on the Year of Energy website here.
Algeria has approved a new Hydrocarbon Law aimed at attracting foreign investment into its oil and gas sector.
The Hydrocarbon Law was drafted in collaboration with five major international oil companies operating in Algeria.
Algeria relies on hydrocarbons, which represent 40% of government revenues and 95.6% of its exports. Backed by state-owned Sonatrach, the new Law comes at a time where the country needs increased activity in its reserves and exploration fields.
The approval of the new law was announced two days after Sonatrach appointed a new CEO, Chikhi Kamel-Eddine, whose main priorities are to increase Algeria’s hydrocarbon reserves and to boost its oil and gas exports.
The country’s hydrocarbon sector is facing a decline in production from old oilfields, a rise in demand for natural gas and an investment climate that negatively impacts exploration and production activities. Algeria intends to maintain its foreign ownership formula for oil and gas projects where Sonatrach will continue to hold a 51% stake.
Algeria’s Minister of Energy, H.E. Mohamed Arkab, will be joining other ministers at the Gas Exporting Countries Forum (GECF) on November 27, 2019 in Equatorial Guinea. The GECF will present the 2nd International Gas Seminar at the Sipopo International Conference Hall as part of the 5th GECF Summit of Heads of State and Governments. Get access to the Seminar by registering here.