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US independent Anadarko said Monday it would record a large, special charge of around $100 million in earnings for the fourth quarter of last year, after Algeria imposed a new windfall tax on foreign oil companies.
The company could also face extra taxes of some $225 million this year -- and possibly double that amount -- depending on oil prices and interpretation of the new levy.
The "exceptional profits" tax, which took effect Aug. 1, 2006, applies when the monthly average price for North Sea benchmark Brent crude exceeds $30 per barrel.
Anadarko's chairman and chief executive, Jim Hackett, indicated that the company expected to be recompensed for the tax at a later date, either through an agreed settlement with Algerian state Sonatrach or via some form of arbitration, an option already raised by Anadarko last July (OD Jul.31,p1 ).
Legislation implementing the new tax was published in December...