06 August 2012, Sweetcrude, LONDON – Algeria’s new law on hydrocarbons will give more tax advantages to foreign investment in non-conventional hydrocarbons, the head of the country’s state oil and gas company said Thursday.
In remarks carried by Algeria’s state news agency APS, Sonatrach Chief Executive Abdelhamid Zerguine, said the law, which would be examined soon by the government, “should give a little more incentive for foreign investors” on non-conventional oil and gas.
Sonatrach said last month it will soon sign partnership agreements with Royal Dutch Shell PLC and Exxon Mobil Corp. on shale gas exploration in the north African country.
Last year, Eni SpA said it signed a cooperation agreement for the development of unconventional hydrocarbons, with particular focus on shale gas, adding that it confirms the country has significant shale gas reserves it wishes to explore and develop with Sonatrach.
*This piece was written by Benoit Faucon for Dow Jones Newswires.