Algeria maintains 51/49 rule in hydrocarbon investments

ALGIERS -Algeria has decided to maintain the “51/49 rule” concerning partnership with foreign investors, which stipulates at least 51 percent stake should be held by Algerian investors in any project with foreign partners, Minister of Energy Youcef Yusfi said Tuesday.

Algeria has decided to maintain the “51/49 rule” concerning partnership with foreign investors, which stipulates at least 51 percent stake should be held by Algerian investors in any project with foreign partners, Minister of Energy Youcef Yusfi said Tuesday.

 Mr Yousfi said in an interview “We have only considered making revisions on the fiscal-related measures of the Hydrocarbon Law, rather than the 51/49 rule or the sovereignty of the country over its wealth.”

It is about “a technical adaptation of some measures, not a political or strategy revision,” the minister added.

The amendments aim at “improving Algeria’s capacities in terms of hydrocarbon outputs amid current economic and financial circumstances, in the interests of both the country and the investors,” according to Yousfi.

The revision of the Hydrocarbon Law may introduce additional financial incentives so as to accommodate changing prices, costs and production technics in the hope of attracting investors and increasing drilling efforts, he said.

On Dec. 6, Yousfi said the government intended to review the Hydrocarbon Law to attract stronger, experienced foreign partners.