Sonatrach Signed Only 13 Deals To Explore Oil Fields Within 11 Years

Energy experts called for the speedy release of tenders and conditions books for the exploitation and exploration of new oil fields in southern Algeria, as soon as the new hydrocarbon law was issued in the Official Gazette and entered into service, especially since all the tenders that were released by the Algerian government between 2008 and 2019, were able to bring only 13 partnership contracts, which proves that the oil fields in Algeria did not attract foreign investors as many expected, due to the closed investment procedures of past years.

The oil expert, Bouziane Mahmah, told Echorouk that after the issuance of the new hydrocarbon law in the Official Gazette, it is expected to launch new international tenders in the field of hydrocarbons, calling for it to be more interesting, in view of the fact that in the previously launched tenders, only 13 contracts were signed between the years 2008 and 2014, i.e. within 6 years, to be permanently suspended thereafter, i.e. until 2019, i.e. in 11 years, only 13 contracts were signed which raises many questions and controversy.

“What should be noted is the existence of a fundamental obstacle that lies within the Organic Law of Finance despite the positive and attractive points for the investments that were included in the new hydrocarbon law. Despite the recent amendment to the Organic Law No. 18-15 of September 2, 2018, regarding the financial laws, especially in Article 18 thereof, and although the amendment came to create an appropriate legal framework that allows for providing sufficient incentives, reassurances, clarity and stability, these elements that feed into the element of confidence in the stability of Algerian legislation are not sufficient”.

“We must bring competent dealers who are able to build dealings with the national partner, Sonatrach, which will be profitable for all within the framework of the endeavors to give more flexibility in embodying the contracts that are concluded between Sonatrach and its partners in a transparent framework”.

“This trend has not been materialized until the moment, which imposes the total exit of the “tax system for hydrocarbons” form the core of the financial laws that are characterized by change every year, and this situation does not contribute to building a stable tax system that attracts foreign investment in the hydrocarbons sector”.