Algeria Softens Upstream Terms, But Remains Firm on LNG Pricing

摘要

Algeria hopes to ride the wave of interest in shale gas plays sparked by the US "shale gale," judging by proposed amendments to the hydrocarbons law improving fiscal terms for unconventional exploration. The changes, approved by the cabinet last month and now awaiting the parliamentary green light, are also designed to lure more international investment into tight gas development after the last three bid rounds from 2008-11 attracted little interest. Described by one industry source as "clearly improved," the terms - which will apply only to new contracts for unconventional resources - will see petroleum revenue tax and corporation tax drop as today's higher oil prices are factored in, as will royalties on unconventional finds. The source says the apparent aim is to guarantee 10%-25% rates of return.