Americans Stoke Controversy Over Hydrocarbons Law… Chakib Khelil Back To Forefront!

The controversy over the hydrocarbons law has returned to the forefront of political events, with warnings that the energy sector could be presented on a gold platter to foreign companies given that Sonatrach announced the resort to an American law firm to prepare the relevant hydrocarbons draft law.

The latter is slated to be released by the end of the current year or during the first six months of 2019, according to Minister of Energy, Mustapha Guitouni.

The Government of Ahmed Ouyahia formally dismissed the hydrocarbons amendment file in accordance with its plan of action approved by the parliament in its two chambers last September, claiming that the current law “failed” to attract foreign investors, as it didn’t tally with the new and fast changes unfolding in the energy sector.

The arguments made by the Executive Branch did not convince political parties, especially the Workers Party, which asked for clarifications about the ins and outs of the projected amendments to the hydrocarbons law.

The spokesman of the Workers Party, Djelloul Djoudi, waxed rather pessimistic about the upcoming amendments to the hydrocarbons law, stressing: “What is really to be amended in the legal text, as there is considerable ambiguity and murkiness surrounding the file…?”

In an interview with Echorouk , Djelloul Djoudi said that the recent statement by Sonatrach’s CEO, saying that the authorities had recourse to an American law firm to prepare the national hydrocarbons draft law, raises concerns and suspicions about the possibility of giving up a sovereign sector in favor of foreign multinational companies.

The spokesman pointed to the battle fought by the Workers Party more than 10 years ago against former Energy Minister Chakib Khelil when he introduced amendments to the hydrocarbons law in 2005, before the retreat of President Abdelaziz Bouteflika, because such a revamped piece of legislation affected the sovereignty of the sector.

“If we were not opposed to the relevant law in 2005, which was worked out with the participation of an American law office, we would not talk today about fuel prices, Sonatrach and national sovereignty over the most important sector that is energy,” Djoudi argued.

He stressed: “Certainly America will serve its imperial interests, as what it did in several countries, such as Brazil, Venezuela and elsewhere in the world.”

Commenting on the recent remarks made by Prime Minister Ahmed Ouyahia, who stated that the current hydrocarbons law has become obsolete, the parliamentary representative of the Workers Party explained: “How can we assert that the current law is not a catalyst for foreign investors at a time when Sonatrach is launching fresh investments at home and abroad?”

“We are working on a new law, but it is not yet clear when it will be ready. There are several parties involved,” Sonatrach CEO Abdelmoumen Ould Kaddour told reporters on Monday. “Foreign companies want to know how much money they will make when they invest,” he underlined to this effect.

Prime Minister Ahmed Ouyahia responded to previous criticism of the Workers’ Party leader, Louisa Hanoune, directly in an explanation published by the Premiership on its website, stating that “the announcement of the review of the law on hydrocarbons has opened the door to a lot of speculations”, as he put it.

“This review will not affect any sovereign issue, including rule 51/49 pertaining to foreign investment partnerships, so just wait for the bill to come out before commenting on it”, the Premier added.