A new Act was promulgated on the 28th April 2005 in Algeria, concerning hydrocarbons. The aspect which attrActs our attention in this study relates to upstream oil activities i.e the prospecting, research and exploitation of hydrocarbons, which fall generally under the purview of petroleum law.

The central idea round articulated in this reform is the demarcation of a line between the state as the public power and owner of the mining domain of hydrocarbons on one hand and the public commercial operator (SONATRACH S.P.A.), (the former holder of all mining titles and delegatee of the public power), on the other hand.

The prerogatives, thus recovered, however are not exercised directly by the Algerian State, but by two organs which have juridical personality and financial autonomy, which are:
- The National Authority for Control and Regulation of hydrocarbons;
- The National Agency, officially named ALNAFT, for development of hydrocarbons.

Although the contract of research, and /or exploitation, is considerably similar to the typical international commercial contract, ,it has a distinct character regarding the quality of implied parties, the mode of its conclusion, the rights and obligations which result during its performance, the guarantees which are reserved and finally in the methods of resolving disputes.