ALGIERS, Oct. 2 (Xinhua) -- Algerian Energy Minister, Mustapha Guitouni, on Monday confirmed the government's decision to amend the hydrocarbons law to make it more attractive for foreign investors, according to official APS news agency.
"The amendment of this law would attract more foreign investments, especially in the field of exploration and exploitation of hydrocarbons," Guitouni told reporters in Algiers, following a meeting of the Algerian-American Business Council, in the presence of major U.S. companies.
This step comes within the financial crisis hitting Algeria due to the decline of oil prices in world markets, and the erosion of exchange reserves, which fell from about 200 billion dollars in 2014 to 97 billion dollars currently.
This situation prompted the government to accelerate the process of reviewing the hydrocarbons law in force since 2006.
On Sunday, Prime Minister, Ahmed Ouyahia, said that the amendment of the hydrocarbons law is a must to attract investors and raise the state's hard currency income.
A report by the International Finance Institute (IFI) predicted that the growth rate of the Algerian economy will decline markedly this year despite the government's austerity decisions to curb budget deficit.
The Algerian economy relies heavily on oil and gas exports, which account for about 30 percent of the country's GDP, and about 95 percent of the country's total exports. Oil and gas exports also account for 40 percent of the country's revenues.
Ouyahia further announced resorting to the exploitation of shale gas, as a supplier of energy to ensure the future of Algerian energy.
Two years ago, this decision triggered a wave of protests in the country to reject the exploitation of this type of energy because of its potential negative effects on the environment and the populations. Enditem
