Full issue - Ministère de l'énergie et des mines

REFORMS
☞
Zone A B C D
0 to 20 000 bop/d 5,5 % 8 % 11 % 12,5 %
20 001 to 50 000 bop/d 10,5 % 13 % 16 % 20 %
50 001 to 100 000 bop/d 15,5 % 18 % 20 % 23 %
For productions above 100,000 boe/d, the royalties rate must be equal
to or greater than the level below: zone A, 12 %; zone B, 14.5 %; zone C, 17 %;
zone D, 20 %.
or several wells for a duration not
exceeding 12 months. This period
shall enable the contracting party to
further identify the characteristics
necessary to the drawing up of the
development plan.
■ The draft development plans must
be submitted to ALNAFT with the
notification of the commercially
exploitable declaration. The draft
and the annual budgets must be
approved by this agency as well as
any change to the development plan.
■ The Minister in charge of
Hydrocarbons may decide upon the
field production restrictions for reasons
linked to the objectives of the
national energy policy. These restrictions
will be fairly distributed by
ALNAFT: it will be applied to all
the contracting parties, pro rata of
their production.
■ ALNAFT may ask each gas producer
to contribute to satisfying the
needs of the domestic market.
■ Gas flaring is prohibited. As an
exception and for limited periods,
ALNAFT may give a flaring authorisation
upon the request of an operator.
This operator must pay a tax of
DZD8,000 per thousand normal
cubic metres.
■ In the event a commercial discovery
encompasses at least two perimeters,
covered in different contracts,
the unitisation plan is submitted for
ALNAFT's approval. In the event
the contracting parties agree on this
plan or if the plan proposed is not
approved, ALNAFT will take on an
independent expert to draw up this
plan. This will be payable by the
contracting parties.
■ In case of a dispute between a
contracting party and ALNAFT,
prior conciliation is provided for.
Should this procedure fail, the dispute
will be submitted to international
arbitration.
■ At the start of each year,
ALNAFT will draw up an “updated
ten-year sliding plan”, taking
account of the developed and as yet
untapped gas reserves, the needs of
the domestic market and the quantities
of gas available for export.
■ To satisfy the needs of the domestic
market as best as possible, a Swap
procedure may be freely negotiated
and applied between the different
suppliers.
■ At the end of the duration of a
research and/or exploitation
contract, the ownership of all the
works enabling the pursuit of the
activities, will be transferred in
favour of the State, free of charge.
■ The tax system applicable to the
research and exploitation activities
includes :
• a non-deductible area (land) tax to
be paid on a yearly basis to the
Public Treasury,
• a monthly royalty paid to
ALNAFT,
• an oil income tax payable monthly
to the Public Treasury,
• an additional tax on the profits
payable annually to the Public
Treasury,
• a land tax on the properties other
than the exploitation ones, such as
fixed by the general tax legislation
and regulations in force,
■ For productions less than or equal
to 100,000 boe/d on a monthly average,
the royalty rates stipulated in
each contract cannot be less than the
rates above.
In PGA
* See full text of the law in the supplement.
Energie & Mines
18
november 2005