Algeria’s national energy firm, Sonatrach, will have its amended national energy law ready by the first half of 2019.
Making the announcement on Tuesday, Sonatrach CEO, Abdelmoumen Ould Kaddour said the new energy law was inspired by Mexican legislation.
“A good model of an energy law is Mexico, as it allowed them to attract $300 billion in investment… definitely this is a good model and I will be very happy to have such a law,” he said.
As a member of the Organization of Petroleum Exporting Countries, Algeria has been preparing changes to its hydrocarbons law in efforts to attract foreign investors.
Earlier this year, during a plenary session of parliament, Algeria’s Energy Minister, Mustapha Guitouni said the country was working to create an environment that would accommodate the changing oil price.
“Many oil-producing countries have adapted their laws and reformulated them in line with the changes of the oil prices. It is no longer possible to continue working with an applied law with the oil price per barrel at $140, while it is currently $70 right now. We cannot remain frozen like this,” he said
With a growing domestic demand, Algeria produces over 1 million barrels per day of oil and 135 billion cubic meters m3 of gas per year.