Algeria has announced plans to hold bids for oil and gas blocks open to international energy companies.
The Algerian legislative is in the process of passing a hydrocarbons law that is expected to assure the profitability of investments. By means of the new law, the level of the taxes is going to reflect the value of the discovery, Khelil Ouahmed, director of gas affairs at Alnaft, the state hydrocarbons regulator has stated.
The last round of bids took place in March 2011 but only two out of the ten permits on offer were successfully awarded.
"We spoke to the foreign companies and they said there were technical and economic problems as well as problems related to rights," Ouahmed stated on the topic.
However, the new hydrocarbons law is expected to ease the process by which international companies gain access and exploit Algeria's oil and gas reserves.