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Algeria upstream fiscal summary

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04 July 2018

Algeria upstream fiscal summary

Report summary

The vast majority of existing contracts in Algeria are under production sharing contracts. However, since the ratification of the 2005 Hydrocarbon Law all new permits are offered under concession terms. The model used in this analysis focuses on the 2013 concession terms. The concession terms comprise a royalty/tax system, with an additional profits tax. Royalty rates vary by location and production from 5.5% to 20%. Income tax and petroleum revenue tax are linked to the project profitability and vary between 19% to 80% and 10% to 70% respectively. Within the concession regime, signature bonus and royalty rates are biddable parameters. Sonatrach, the national oil company, retains the option to assume 51% equity in all future commercial developments. Sonatrach is carried through the exploration phase, but contractors are reimbursed Sonatrach's share of exploration costs from future production.

Table of contents

  • Executive summary
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring Fencing
      • Bonuses, rentals and fees
      • Indirect Taxes
      • Royalty
      • Additional Profits Tax
      • Corporate Income Tax
      • Fiscal treatment of decommissioning
        • Corporate income tax
      • Product Pricing
    • Recent history of fiscal changes
    • Stability Provisions
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
    • Progressivity
    • Fiscal deterrence

Tables and charts

This report includes 25 images and tables including:

  • Revenue flowchart: Algeria Concession
  • Timeline
  • Timeline detail
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate - onshore, oil and gas
  • Effective royalty rate - shelf , oil and gas
  • Maximum government share - onshore, oil and gas
  • Maximum government share –shelf, oil and gas
  • State share versus Pre-Share IRR - oil
  • State share versus Pre-Share IRR - gas
  • Investor IRR versus Pre-Share IRR - oil
  • Investor IRR versus Pre-Share IRR - gas
  • Bonuses, rentals and fees
  • Indirect Taxes
  • Royalty rates
  • Minimum royalty rate
  • Current licence, equity and fiscal terms: Table 4
  • Current licence, equity and fiscal terms: Table 5
  • Current licence, equity and fiscal terms: Table 6
  • Current licence, equity and fiscal terms: Table 7
  • Summary of modelled terms
  • Current licence, equity and fiscal terms: Image 2

What's included

This report contains:

  • Document

    Algeria upstream fiscal summary

    PDF 321.88 KB

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