Law No. 2011/025 of 14 December 2011 on the Development of Associated Gas

The Law on the Development of Associated Gas seeks to encourage the recovery of flared and vented gas for commercialisation and to contribute to reducing GHG emissions.
Ownership: In terms of the law, associated gas is the exclusive property of the state but permits its exploitation by operators holding exploitation authorisation for hydrocarbons and third-party licensees thereof (Art. 5-6).
Flaring: The law permits flaring upon the grant of a 60-day, renewable, flaring permit by the Minister in charge of the upstream oil sector at the request of the operator if technical and economic factors warrant (Art. 8). Operators undertaking flaring are required to comply with a flaring standard (set by the Decree) and submit a compliance report to the Minister, containing the quantities of gas flared, at the expiration of the license period. Flaring without authorisation and non-compliance with the flaring standard are recognised as offenses punishable with fines and suspension or withdrawal of the flaring permit.
Tax benefits: The law lays down certain tax benefits for operators undertaking associated gas exploitation, including exemption from company tax for the first 5 years of operation and reduced tax rates thereafter, exemption from certain fees, and permitted deductions of depreciation (Art. 19).

The Law is supplemented by the Decree laying down the terms and conditions for the implementation of the Law on the Development of Associated Gas. The Decree specifies that flaring will not be considered technically or economically feasible in the following situations: safety constraints; start-up tests for exploitation operations; and emergencies (Article 4). The quantities of gas flared must be reported at the end of the authorisation period (Article 9). The Decree also specifies that the operator must maintain a gas flare metering device and keep a gas flare register (Articles 11 and 12).  

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