The Algerian Hydrocarbons Regulations

The hydrocarbons sector is the backbone of the Algerian economy, accounting for roughly 60% of revenues, 30% of GDP, and over 95% of export earnings. Algeria has the 8th largest reserves of natural gas in the world, is the 4th largest gas exporter and ranks 15th in oil reserves.

The new hydrocarbon regime implemented in 2005 sought to liberalise the Algerian oil exploration and exploitation industry, in particular, by relieving the state's national oil company, Sonatrach, of its public regulatory function and by simplifying considerably the hydrocarbons legal and tax regime. However, the market liberalisation aspirations of the 2005 law have been significantly constrained by presidential amendments made to the new law in July 2006.