Algeria to Reform Energy Regulations Next Year

Algeria to Reform Energy Regulations Next Year

Algeria plans to reform its energy laws by the end of 2018, according to Algerian officials, Reuters reports.

“Work has started. The first draft will be ready by May-June,” the Energy Minister, Mustapha Guitouni, said, adding that time is needed “to prepare a good law.”

The legal reforms are intended to attract foreign investment to the country and its petroleum and natural gas resources, according to Reuters.

The reforms will provide tax inducements and eliminate red-tape, Guitouni noted, stating that the government is “determined to wage war on bureaucracy.”

Algeria has struggled to attract foreign investments in its energy sector and lower energy prices have put considerable strain on the country’s budget, Reuters reports.

In 2014, foreign consortiums won only four out of the 31 oil and gas field concessions in Algeria, according to Reuters.

Key government officials have recently called for reforms to offset this trend.

Despite possessing the tenth largest natural gas reserves in the world, production has been declining over the past few years due to low-investment rates, according to UPI.

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