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Company Profits Dropping Due to the New Hydrocarbons Tax Law in Algeria

09-05-2007

Big oil companies activating in Algeria recorded a drop in their revenues due to taxes on exceptional gains the amended hydrocarbons law imposes. Small companies though recorded an increase in their profits.
 

The Danish oil company A. P Moller-Maersk Group has reviewed its expectation set for 2007. The giant group announced further that its 2007 revenues are to drop, owing that to the taxes that Algeria imposes and to the increase of oil production cost in the international markets.
 

The American Anadarko Petroleum Corporation, which is the biggest foreign hydrocarbons investor in Algeria, has already revealed a heavy drop in its net revenues during 2007 first quarter compared to 2006 same period. Anadarko explained that its revenues drop is due to the fees of restructuring and the new taxes on profits Algeria adopted.
 

In turn, small size companies, mostly oil services companies, are reaping big profits thanks to the revitalisation that the amended hydrocarbons law has set up in the oil and gas sector. In this context, the French Entrepose Contracting Group, which principal activity is to design and realize industrial projects in oil, gas and energy sectors, has recorded a 40% profits raise during 2007 first quarter.