Full issue - Ministère de l'énergie et des mines

REFORMS
Hydrocarbons law
Finally safe and sound !
Energie & Mines
16
On 20 March 2005, the
National People’s Assembly
(APN) adopted the hydrocarbons
bill which was
presented a few years ago
and which, after arousing
lively protests from different
sectors of opinion, was “frozen”
in Spring 2003, i.e. one
year before the presidential
election in April 2004.
For the Minister of Energy
and Mines, Mr Chakib Khelil,
this vote is at the end of a
long road, fraught with pitfalls.
After the freezing of the
bill was announced two years
ago, few observers would
have bet on the chances
of this text which almost
everyone was unanimous
against. The resounding
victory of President
Bouteflika in the April 2004
election, the tenacity of the
Minister of Energy, the changes
in the international
environment, particularly
in neighbouring Libya, but
also the increase in power of
several gas exporting States
such as Qatar, Egypt and
Trinidad-and-Tobago, efforts
of renewed explanation particularly
towards the General
Workers’ Union (UGTA) would
justify all the obstacles. The
parliamentary debates took
place without a hitch, as the
Minister predicted at the
start of 2005 and, in total,
the text arrived safe and
sound.
november 2005
Sonatrach, then reinvigorated
given that no one spoke
about dismantling the national
company, found itself,
in the terms of the new law, reinvigorated
and comforted by substantial
advantages.
■ An option to take an interest
“which could reach 30% without
being lower than 20%” in any commercial
discovery by a third party,
only reimbursing the costs of the discovery
wells and assessment drilling
works. The option must be exercised
no later than 30 days after the discovery
development plan has been
approved.
■ The joint marketing of gas for
exporting.
■ The ability to keep all the fields,
the modes of transport and the processing
and distribution facilities
which it owns today. Mr Khelil
hence predicted that it would continue
to control the majority of the
hydrocarbons produced in Algeria
(75% in 2002, not taking account of
the percentage going back to it in the
association contracts). The national
company controls about 40% of the
perimeters of the national mining
estate relating to hydrocarbons,
whose surface area is 1,500,000km2.
■ Sonatrach will benefit from a
research and exploitation contract
for each perimeter it owns. In case of
a commercial discovery, it may base
itself on this contract to obtain the
funds necessary to develop this discovery
on the basis of project financing.
■ Sonatrach obtains the assignments
on the existing transportation by
pipeline works, i.e. a network of
14,000km, and it will no longer be
mandatory for it to finance the future
pipelines. It may hence freely
makes its investments in the most