Major Energy Companies “Protest” And Inquire About Algeria’s Hydrocarbons Law

Delegations from major energy companies have visited Algeria recently to discuss ways and means of promoting cooperation and partnership.
The latter are keenly interested in the content of the new hydrocarbons law that the government will consider in the coming days after the urging of “Sonatrach” to speed up the adoption of a new legislative text as being more attractive for investments.
On the other hand, a delegation of the US oil giant “ExxonMobil”, visited of late Algeria where its members met with officials, experts and executives of the National Hydrocarbons Company “Sonatrach”, with whom they discussed how best to shore up partnership and investment in the rich Algerian mining sector.
The US side has expressed interest in investing in the Algerian mining sector, which offers huge opportunities and potential, according to “Echorouk’s sources, both in the conventional and non-conventional hydrocarbons, as well as in offshore oil and gas.
The delegation of US “Exxon Mobil” company had a conversation with officials of Sonatrach’s senior executives about the country’s brand-new hydrocarbons law and the changes that will occur as a result, especially with regard to partnership contracts and the tax regime to be adopted and other salient points.
According to a statement issued by Sonatrach of which Echorouk got a copy, a delegation of experts from “Exxon Mobil” energy company, visited Algeria on 25th and 26th of September, to study ways of possible partnership between the two companies, together with officials and experts from the Algerian hydrocarbons group Sonatrach, and attended a string of technical workshops to identify and explore multifarious partnership opportunities.
The statement pointed out that the two sides agreed to pursue talks of mutual benefit. A few days ago, the government announced that it had held a meeting to examine the preliminary draft law on hydrocarbons, which according to a statement from the Prime Ministry’s office, is in response to developments in the field of hydrocarbons, both internally and externally, after the current law issued in 2005 and amended in 2013 in some of its provisions showed “limitations as well as some negative effects on production processes and failed to attract foreign investments. ”
On September 23rd, a delegation of officials and experts from the US oil company “Chevron” visited Algeria and met with officials, experts and executives from “Sonatrach”, with whom they tackled ways of possible fruitful partnership between the two sides.
A number of technical workshops were held to identify and explore different partnership opportunities between the two companies.
The U.S. delegation showed great interest in the potential of the Algerian mining sector, and the partnership sectors were identified, and the agenda of the next steps and the approach adopted by the two companies were agreed upon.
According to Echorouk’s sources the American company inquired about possible alterations in the text of the new hydrocarbons law, and the incentives that it will include, especially in relation to taxes and fees imposed on the foreign partner in oil and gas contracts.
As for the Sonatrach partners already present in oil and gas projects in Algeria, there have been sustained contacts and discussions before the ongoing popular movement, whether related to the new hydrocarbons law or other matters pertaining to these energy projects.