Changes aimed at reviving flagging foreign investment
(REUTERS) OPEC member Algeria plans to change the way it levies tax on some energy projects so that foreign oil companies pay tax on profits they make from the projects and not on turnover, a newspaper quoted Energy Minister Youcef Yousfi as saying.
The minister also said a decision would be made on the planned Galsi gas pipeline to Italy by the end of the year after a review of its feasibility and that technical problems would reduce output for up to three months at the Arzew refinery.
Algeria has promised changes to its tax regime to make the country more attractive to foreign energy companies after three consecutive bid rounds for oil and gas acreage failed to attract much interest.
Yousfi, quoted by the online edition of the El Khabar newspaper late on Tuesday, said the new tax mechanism would apply only to oil and gas projects that are not currently in production and are considered high risk.