Algerian energy law fuels anger on streets
A draft law on Algeria’s oil and gas sector has been met with hostility by an anti-regime protest movement that fears “the nation’s wealth” is being sold off to multinational companies. But experts say the pushback from the streets is not entirely justified, seeing it rather as a symptom of the distrust that dogs any decision taken by authorities deemed “illegitimate” by opponents. For nearly nine months Algeria - Africa’s third-largest oil producer and a top 10 global gas producer - has been swept by an unprecedented popular movement challenging a regime in place since independence from France in 1962.
The draft energy law, which has not been officially published, was sent to Algeria’s cabinet on Oct 14. Since then, it has been added to the protesters’ list of grievances with the ruling class, seen by demonstrators as “thieves” that have “plundered” the country’s wealth. “You sold the country,
traitors,” demonstrators cried last week as lawmakers began discussing the draft law. The bill is expected to be put to a vote today, roughly a month ahead of presidential elections also widely rejected by the street.
Many Algerians suspect those in power of handing over natural resources to foreign companies with the new law, having already “squandered” oil revenues, said El Mouhoub Mouhoud, economics professor at Paris-Dauphine University. “These opinions are a testament to the current government’s lack of credibility in the eyes of the people.” Nevertheless, Mouhoud told AFP, everything “suggests that in this new draft law, the mineral title (rights to underground resources) stays in the hands of the state, while exploitation and investment operations can be shared” more favourably than before for foreign investors.
Francis Perrin, director of research at the French Institute for International and Strategic Affairs (IRIS), said that while the text makes “adjustments” to the legislation, “the broad direction of Algerian policy on oil and gas is absolutely not called into question”. The law will continue to guarantee that state-owned oil company Sonatrach has a majority stake in all projects involving foreign players. — AFP