Hydrocarbons 51/49 Rule Maintained, Yousfi

The amendment of the hydrocarbons law will not affect the 49/51 rule related to foreign investment in the hydrocarbons sector, Minister of Energy and Mining, Youcef Yousfi said Saturday.

In an interview with the APS news agency, Mr Yousfi said “I’d like to remind that the modifications that the government is making on the hydrocarbons law would not affect the 49/51 rule, which enables local companies to hold the majority stake in partnership project with foreign operators,” adding that “It is about an adaptation of some technical and tax measures, rather than political or strategic changes.”

The revision of the hydrocarbons law aims at “putting into effect a strategy and procedures which would permit, not only to attracting foreign investors, but also to opening new horizons of partnership, by diversifying the volume of the exchange of experience, and ultimately, increase chances of technologies transfer,” the minister specified. 

Mr Yousfi explained that the amendments that are to be brought to the law concern principally “tax incitation as part of hydrocarbon projects that are to be developed by Sonatrach with foreign partners.”

“Tax measures are to be adapted in a way to guarantee a minimum ceil of profitability to the invested funds, and also to develop the country’s hydrocarbons potential within profitable economic and financial conditions for the investors,” he added.

The said amendments “would permit the creation of necessary conditions for the development of both non-conventional hydrocarbon wells and non exploited offshore zones,” the minister concluded.