Algeria is planning to reveal details of its new draft hydrocarbons law in January 2018, according to an industry source.
The amendments to the law are going to change the legislation in several areas including altering the rules regarding fiscal caps, according to the source.
The aim of the overhaul is to make future licensing rounds more appealing to oil and gas companies.
Algeria is planning to launch a new licensing round as soon as the overhaul of the hydrocarbon law is complete.
In the upcoming round Algeria’s state oil company Sonatrach is going to auction permits where there is potential to develop conventional asserts as well as permits where there is potential to develop unconventional assets, according to the source.
“Bringing more companies that have shale experience into Algeria is a priority for Sonatrach,” the source said. “It is hoped that the amendments to the hydrocarbon law will make Algeria’s unconventional plays much more attractive to oil companies.”
Algeria has struggled to increase interest from international oil companies due to security problems and restrictive legislation.
Only four oil and gas blocks were awarded, out of a possible 31, in its most recent licensing round, held in September 2014.
After the results of the 2014 licensing round were published officials announced there would be a new licensing round in 2015, but this has been repeatedly delayed.
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