Country Report
Algeria upstream fiscal summary
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The 2019 hydrocarbon law gives contractors the flexibility to choose between participation contract (concession), production sharing contract (PSC)or risk service contract terms. The participation contract is a royalty/tax system with an additional profits tax called the Hydrocarbon Tax. The contract includes a royalty rate of 10%. The Hydrocarbon Tax is linked to project profitability and can vary between 10% and 50%. Corporate income tax is levied at 30%. In PSC, the 2019 hydrocarbon law introduced a R-factor linked profit sharing. Both cost recovery and profit sharing tiers and rates, are negotiable and assumed. Income tax on foreign contractors is levied at 30%. In PSC, there is no minimum participation for state and is assumed at 30%. Sonatrach, the national oil company, has the option to take a 51% equity share in all participation contracts. The contractor will carry Sonatrach through the exploration phase. Sonatrach will reimburse the contractor from the start of production.
Table of contents
- Basis
- Licence terms
- Government equity participation
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Fiscal terms
- Bonuses, rentals and fees
- Indirect Taxes
- Royalty (concession)
- Ring fencing
- Base
- Rate
- Payment schedule
- Production sharing (PSC)
- 27 more item(s)...
- Recent history of fiscal changes
- Stability Provisions
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Split of the barrel and share of profit
- Concession
- Profit sharing contract (PSC)
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Effective royalty rate and maximum government share
- Concession
- Profit sharing contract (PSC)
- Concession
- Profit sharing contract (PSC)
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Progressivity
- Concession
- Profit sharing contract (PSC)
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Fiscal deterrence
- Concession
- Profit sharing contract (PSC)
Tables and charts
This report includes the following images and tables:
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TimelineTimeline detailBonuses, rentals and fees
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Indirect TaxesProfit sharingHydrocarbon tax ratesHydrocarbon tax ratesConcessionProfit sharing contract (PSC)Split of the barrel - oilSplit of the barrel - gas
- 18 more item(s)...
What's included
This report contains:
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