The prospect of more industry-friendly oil and gas law in Algeria have improved further after the head of the national oil company confirmed that new legislation will encourage the development of unconventional resources.
Abdelhamid Zerguine, Sonatrach’s Chief Executive, said on state television that the new law will give more tax advantages to non-conventional hydrocarbon development and “should give a little more incentive” to foreign investors in Algeria, according to a Dow Jones report.
Current oil and gas law in Algeria has deterred foreign participation in the country’s upstream industry, despite huge oil and gas reserves and the potential for Algeria to muscle in on Russia’s share of gas supply to Europe.
Oil Minister Yousef Yousfi has committed to pushing through new legislation before the end of the year, and says Algeria will host its first new exploration auction within two years, which will include offshore blocks for the first time.
Eni has signed a new unconventional deal in Algeria, and E.On continues to find more oil and gas in the North African country. ExxonMobil and Shell are set to follow after concluding talks with Sonatrach.
