Algeria is to levy a windfall tax on the profits of oil companies, as it tries to retain more of the economic benefits of its recent energy boom.
A plan to tax "excess" profits when oil prices average more than $30 (£16) a barrel is set to become law next year.
Other measures agreed by the Algerian parliament will give state-owned oil firm Sonatrach an increased stake in exploration and refining contracts.
Algeria is one of Africa's largest oil and gas exporters.
Frequent oil and gas discoveries in recent years have helped boost Algeria's economy after years of political upheaval and violence.
Daily oil production is set to increase from one-and-a-half million to two million barrels by 2010.
"This will have a positive effect on future generation"
It is estimated that Algeria is sitting on total oil reserves of nearly 12 billion barrels, which has made it a magnet for investment by foreign oil firms like Shell, BP, Anadarko Petroleum and Hess Corporation.
The Algerian government is keen to exercise more control over its natural resources and capture more of the financial benefits of high global oil prices.
'Public good'
From early 2007, profits accrued by firms when prices are above $30 a barrel will be taxed at between 5% and 50% depending on total output.
The tax will apply to existing production agreements between the state oil firm and private operators as well as those signed in the future.
In addition, it will be mandatory for Sonatrach to be involved in all future energy development projects and it will be entitled to a 51% stake in production and refining contracts with foreign firms.
"This will have a positive effect on future generation," Chakib Khelil, Algeria's energy minister, said of the measures.
"It is a gain for the public good as that will reinforce the state's role in monitoring the sector."
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