Algeria said today it had explained a new windfall tax to foreign oil companies active in its upstream sector and most were satisfied with the exercise. Rules for the tax were set in December and are retroactive to 1 August 2006 under new legislation widely seen as an example of resource nationalism sweeping the global energy sector.
The new tax "has been explained to them by Sonatrach. Most companies to which Sonatrach has explained it have been satisfied," Algeria's Mines & Energy Minister Chakib Khelil told Reuters on the sidelines of an African summit in Algiers. Anadarko Petroleum said last month it was at an impasse with Sonatrach in a dispute over whether they should renegotiate their production sharing agreement.
Dick Holmes, head of Anadarko's Algerian unit, has said his company may know this month whether or not it will enter a dispute process with Sonatrach over the new tax. He said Anadarko was in talks with Sonatrach to try to establish whether the tax will be levied on the total value of Anadarko's production or on only the portion generated by an international oil price of above $30 a barrel.
"The regulation has been issued," said Khelil. "I don't need to say anything on that." "They (Anadarko) have an interest in confusing the situation because they want to pay less. It is not only Anadarko. They are pushing other companies to take the same position. But our position is very clear." he said.
The new tax "has been explained to them by Sonatrach. Most companies to which Sonatrach has explained it have been satisfied," Algeria's Mines & Energy Minister Chakib Khelil told Reuters on the sidelines of an African summit in Algiers. Anadarko Petroleum said last month it was at an impasse with Sonatrach in a dispute over whether they should renegotiate their production sharing agreement.
Dick Holmes, head of Anadarko's Algerian unit, has said his company may know this month whether or not it will enter a dispute process with Sonatrach over the new tax. He said Anadarko was in talks with Sonatrach to try to establish whether the tax will be levied on the total value of Anadarko's production or on only the portion generated by an international oil price of above $30 a barrel."The regulation has been issued," said Khelil. "I don't need to say anything on that." "They (Anadarko) have an interest in confusing the situation because they want to pay less. It is not only Anadarko. They are pushing other companies to take the same position. But our position is very clear." he said.
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