Algeria Set to Review Hydrocarbons Law, Yousfi

Algeria is set to review its hydrocarbons law in a way to attract more foreign drilling investments, Minister of Energy and Mines, Youcef Yousfi announced Tuesday in Doha, Qatar.

The local APS news agency has quoted Mr Yousfi as saying that such a decision is dictated by the need for attracting strong and experienced partners to help the North African country to increase its hydrocarbons reserves.

The new technologies used in the hydrocarbons drilling operations will certainly help Algeria to look for new opportunities for increasing its reserves, Mr Yousfi assumed.

The Minister said the state owned Sonatrach energy group has been hitting “encouraging and satisfactory” outputs thanks to the use of some of the said technologies. 

Yet, the North African nation still needs foreign partners in order to expand the use of those technologies, and ultimately make drillings in the high sea and unknown places, he said.

 “Algeria has to adapt more motivation measures in the Law n° 05/07 related to the hydrocarbons, which has been approved before the emergence of these new technologies, and at a time oil prices swung between 20 and 30 USD,” Mr Yousfi explained. 

The minister added that the government is discussing to review some measures related to taxes and the arrangements of contracts being sealed between Sonatrach and its foreign partners.

“We have to guarantee local supplying security on the long term, as well as preserving the key role of Algeria in the international energy market,” Mr Yousfi concluded.