Algerian upstream remains not for the fainthearted

Even after the hydrocarbons law passes, would-be partners will not have troubles to seek

It has been almost a year-and-a-half since Algeria’s parliament passed its new hydrocarbons law, which was drafted to encourage investment into the upstream sector. But the appetite for new investment will be tested only after the June 2021 general elections, when Algeria’s new legislature is expected to approve the almost-complete implementation texts for the new legislation. Algerian NOC Sonatrach is unlikely to benefit from a strong surge of new private sector investment in the second half of 2021. This is partly a result of the oil price crash of 2020, which forced IOCs to cut spending and high-grade acreage globally. But it is also because Algeria’s new hydrocarbons law is not a game-ch