Algeria’s cabinet approved a new energy law that is expected to pump more investments in the vital hydrocarbon sector.

Algeria plans to pass a new energy law that offers tax incentives to attract investment and is in discussion with foreign firms such as BP and Anadarko regarding its shale gas reserves.

Algeria will amend its hydrocarbons law before the end of the year to attract more foreign investment to help it develop potentially big reserves of non-conventional resources, an adviser to the country's energy minister said on Thursday, according to a Reuters report.