Algeria’s house of parliament passed a new energy law to make its oil and gas investment more attractive to international oil companies (IOCs), Zawya reported.
The new law’s legislation still needs approval by the upper house of parliament, aiming to boost Algeria’s energy production capacity by bringing IOCs to work with state producer Sonatrach.
The new law introduces new types of contracts such as production sharing, participation, and risk services that will encourage foreign companies to partner with Sonatrach in oil and gas projects, replacing old concession contracts.
Furthermore, the law provides tax incentives to simplify the whole structure of fiscal terms and remove bureaucratic obstacles by reducing administrative procedures for investors.
According to a lawmaker from the National Liberation Front party, Lahbib Senoussi, “The new law is aimed at achieving goals that serve the economy and national sovereignty. This law is a necessity, not an option.”