The hydrocarbons activities are governed by this new law n°19-13 and its executive decrees (about 42 decrees). Notably however, all the existing contracts are under the old hydrocarbon law n°86-14. So far only 5 new contracts have been signed under this new law. The new Law seems to have attractive fiscal regime and contractual flexibility (especially for the new contracts) which covers:
- Upstream activities
- Downstream activities
- HSE
The upstream activities include the activities of prospecting, exploration, appraisal, and exploitation of hydrocarbons; as well as processing facilities, compression, gathering system, storage and expedition facilities and site abandonment activities.
Upstream concession by which ALNAFT allows the national company the right to carry out exploration and exploitation activities on a perimeter, delivered by ALNAFT for an initial duration of 30 years.
Deed of Assignment: by which ALNAFT grants to the contracting parties (National Company & any pre-qualified person) the right to carry out research and exploitation activities within a defined perimeter.
Hydrocarbon contract: contract for upstream activities concluded between the national company and a pre-qualified Company, for a period of 30 years.
• Two (02) periods: Exploration Period (Max. 7 years) and an Exploitation Period (30 year less duration used for exploration).