Algeria to Offer Fresh Incentives For Unconventional Gas Exploration

Algeria is offering fresh incentives to lure more international players to exploit its unconventional resources, especially shale gas.

The new law on hydrocarbons which would be examined soon by the government will give more tax advantages to foreign investment, CEO of Sonatrach Abdelahamid Zerguine said, APA News reported.

"All countries make laws to attract foreign direct investment, this is especially true in hydrocarbons that yield huge financial amounts. This is the only way to attract investment," he said.

Advantages will be granted to foreigners considering the expensive investment in the development of non-conventional hydrocarbons and the risks of loss in exploration, Zerguine said.

Shell and ExxonMobil initiated discussions recently on shale gas exploration in the North African country, which signed a similar deal with Eni of Italy last year.