Algeria plans hydrocarbons law revisions but opposition to shale remains

Prime Minister Ahmed Ouyahia’s government is expected to revise the hydrocarbons law, which was passed in 2005 (Law 05-07) as a liberal document drawn up by then energy minister Chakib Khelil, but was then revised to take on a much more nationalist tone. Another revision, in 2013, disappointed international oil companies (IOCs) looking for more reasons to invest in Algeria, where IOC participation is restricted to 49% of a project’s equity and other terms are seen to strongly favour the government. While radical changes are not anticipated – the ‘51/49 rule’ is expected to remain in place – the government is expected to take a more pragmatic approach to attract upstream investment.