Algeria aims to attract shale gas investment with new law

05 August 2012

Algeria’s Sonatrach plans tax incentives amid shale gas talks with ExxonMobil and Shell

Algeria intends to introduce a new hydrocarbons law to attract investment in its unconventional oil and gas resources, says Abdelhamid Zerguine, head of the country’s state-owned energy group Sonatrach.

Zerguine told state news agency APS that the law “should give a little more incentive for foreign investors” in its non-conventional energy sector.

Sonatrach is in talks with US-based ExxonMobil and UK-Dutch Shell Group to sign partnership deals on shale gas exploration, Zerguine said in July. Italian oil group Eni has already sign an unconventional hydrocarbons exploration agreement with Sonatrach.

Algeria is hoping it can replicate the development of the shale gas sector in the US, which has rapidly increased the country’s gas reserves and production over the past decade.

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