Algeria: Cut in the selling price of Saharan Blend crude oil
Ahmed Salem
Algeria's state-owned Sonatrach company has cut the official selling price for its Saharan Blend crude oil this month to 40 cents a barrel above the Brent crude benchmark price, according to the latest list of Algerian crude export prices.
Bloomberg reported that the official selling price for Saharan Blend crude was $1.10 per barrel above Brent crude last month, reflecting a decline in the premium to its lowest levels since last March.
The Sahara Blend crude is considered one of the most prominent and high-quality crude oils globally, thanks to its characteristics of being light, having a low sulfur content, and being easy to refine. It is primarily produced from desert fields, most notably the Hassi Messaoud field.
Algeria Opens Its Doors to Investment
In a related context, Algeria continues to implement extensive economic and legislative reforms aimed at improving the investment climate and attracting foreign capital, by modernizing investment laws, simplifying administrative procedures, and offering new incentives to investors, as part of a strategy to diversify the economy and reduce its reliance on the hydrocarbon sector.
The investment system has undergone its most significant reform in more than a decade, with the 2026 Finance Act coming into effect, alongside the continued implementation of the amended Investment Law of 2022, which overhauled foreign investment rules by allowing 100% full foreign ownership in most non-strategic sectors, following the repeal of the 51/49 rule, which had required foreign investors to have an Algerian partner holding the majority stake. Restrictions remain in place for strategic sectors, such as defense, hydrocarbons, certain mining activities, and public utility management.
In order to facilitate investment procedures, the Algerian government established the Algerian Agency for Investment Promotion (AAPI) to be the unified body responsible for registering projects and supporting investors, in addition to working on digitizing administrative services and simplifying company incorporation procedures, which contributes to reducing bureaucracy and improving the business environment.
New legislation has also strengthened legal guarantees for investors by approving the principle of free transfer of capital and profits abroad, in accordance with applicable legal frameworks, thereby providing greater confidence for international investors.
