+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

Algeria Upstream Fiscal and Regulatory Guide

  • ID: 5005380
  • Report
  • February 2020
  • Region: Algeria
  • 31 pages
  • GlobalData
Algeria Upstream Fiscal and Regulatory Guide

Summary

With the December 2019 petroleum fiscal overhaul, Algeria has reintroduced PSAs and Risk-Service Contracts in the country; however, as the new law is set at a general level, in order to make it effective, it is now necessary to enact additional regulations providing information concerning the actual types of contracts. It is expected that once it has passed the additional petroleum regulations, Algeria will start again to organize licensing rounds (the last one occurred in 2014 and had a negative result). Under the new law, Algeria may award petroleum contracts on the basis of licensing rounds organized by ALNAFT or direct negotiation between the Sonatrach and ALNAFT. The 51% minimum state share has been maintained because of its political significance, and the potential attractiveness of new PSAs and RSAs will depend significantly on whether an attractive framework can be designed within this limit.

“Algeria Upstream Fiscal and Regulatory Guide”, presents the essential information relating to the terms which govern investment into Algeria’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Algeria’s upstream oil and gas investment climate.

Scope
  • Overview of current fiscal terms governing upstream oil and gas operations in Algeria
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Algeria
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Algeria’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making
Note: Product cover images may vary from those shown
1. Table of Contents
1.1. List of Tables
1.2. List of Figures
2. Regime Overview
2.1. Regime Overview ─ Royalty/Tax
2.2. Regime Overview - Production Sharing Agreements
2.3. Timeline
3. State Take Assessment
4. Key Fiscal Terms ─ Royalty and Taxes
4.1. Royalties, Bonuses, and Fees
4.1.1. Signature Bonus
4.1.2. Surface Tax
4.1.3. Royalties
4.2. Hydrocarbons Revenue Tax (IRH) - Contracts from 2020
4.2.1. Petroleum Revenue Tax (IRH, previously known as TRP)
4.2.2. Reduced Tax Rates
4.3. Petroleum Revenue Tax (TRP) - Pre-2020 Contracts
4.3.1. TRP Taxable Income (General Definition)
4.3.2. TRP Rates for Contracts From 2013 to 2019
4.3.3. TRP Rates for Pre-2013 Contracts
4.4. Tax on Results (ICR)
4.4.1. Contracts From 2020
4.4.2. ICR for Pre-2020 Contracts
4.4.3. Deductions for the ICR and Depreciation
4.5. Other Applicable Taxes
4.5.1. Flaring Tax
4.5.2. Water Tax
4.5.3. Transfer Duty (No Changes Over the Years)
4.6. Tax Exemptions (No Changes Over the Years)
4.7. State Participation (No Changes Over the Years)
5. Key Fiscal Terms ─ Production Sharing Agreements
5.1. Royalties, Bonuses and Fees
5.1.1. Signature Bonus
5.1.2. Royalties and Surface Fees (Paid by Sonatrach)
5.2. Production Sharing
5.2.1. Pre-2005 Contracts - Cost Recovery
5.2.2. Pre-2005 Contracts - Profit Sharing
5.2.3. Sliding Scale (1980s)
5.2.4. Price Cap (Contracts Before 2001)
5.2.5. K-Factor (Contracts After 2001)
5.2.6. Production Entitlement
5.3. Exceptional Profits Tax (TPE) for PSAs (1986-2005 Contracts Only)
5.4. Taxes and Other Payments Borne by Sonatrach
5.4.1. IRH ─ Contracts From 2020
5.4.2. TRP - Previous Contracts
5.4.3. IBS (Pre-2006)
5.4.4. Tax on the Gross Remuneration of the Foreign Co-Licensee - Contracts From 2020
5.4.5. Tax on Results (ICR) - Previous Contracts
5.5. Taxes Borne by Licensees
5.6. State Participation
6. Regulation and Licensing
6.1. Legal Framework
6.1.1. Governing Law
6.1.2. Contract Type
6.1.3. Title to Hydrocarbons
6.2. Institutional Framework
6.2.1. Licensing Authority
6.2.2. Regulatory Agency
6.2.3. National Oil Company
6.3. Licensing Process
6.3.1. Licensing Rounds
6.3.2. Prequalification (2014 Round)
6.3.3. Bidding (2014 Round)
6.3.4. Bid Evaluation (2014 Round)
6.4. License Terms
6.4.1. Duration and Relinquishments
6.4.2. Relinquishments
6.4.3. Unconventional Resources
6.4.4. Work Obligation
7. Appendix
7.1. References
7.2. Contact the Publisher
7.3. Disclaimer

List of Tables
Table 1: Regime Overview
Table 2: Algeria, Key Events Since Year 2000
Table 3: Algeria, Surface Tax Rates (DZD/km2), Contracts From 2020
Table 4: Algeria, Surface Tax (DZD/km2), Pre-2020 Contracts
Table 5: Algeria, Conventional Royalty Rates, Pre-2020 Contracts
Table 6: Algeria, IRH Rates, Contracts From 2020
Table 7: Algeria, IRH/TRP R-Factor, From 2020
Table 8: Algeria, IRH/TRP Investment Tranches and Uplift, Before 2020
Table 9: Algeria, IRH/TRP Rates ─ Law No. 13-10 of February 2013 (%), Before 2020
Table 10: Algeria, ICR Depreciation Rates (%), Current Rates Unless Changed by Future Regulations
Table 11: Algeria, Representative Sliding Scale Profit-Sharing Framework, PSAs Signed in the Late 1980s
Table 12: Algeria, K-Factor for PSAs Signed After 2001
Table 13: Algeria, TPE Rates Under PSAs, 1986-2005 Contracts
Table 14: Algeria, Work Program Bid Evaluation Scheme, 4th National and International Licensing Round
Table 15: References

List of Figures
Figure 1: Regime Flow Chart
Figure 2: Regime Flow Chart
Figure 3: Algeria, Indicative NPV10/boe, IRR and State Take Comparison, Regional
Figure 4: Algeria, Legal Framework
Figure 5: Algeria, Institutional Framework
Note: Product cover images may vary from those shown
Adroll
adroll