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.