Page 67 - Vol 33 Issue 34 2021

Analysis oil

to focus on its core competence – exploration, Local Content what previously was addressed in multiple
production, and marketing of hydrocarbons. sources and (ii) clarifies industry participants’ local
The divestment program is said to have netted Attracting foreign investment to Angola was content obligations. Most importantly, there is a
a modest US$60 million, meaning that significant the key driver behind the above four 2020 fundamental shift in the law through the adoption

as set acquisition opportunities exist for inte res ted developments. Of course, the primary beneficiary of a new “Angolan company” concept for local
investors. In terms of the privatization of So nangol, of the development of oil and gas reserves must content (i.e., companies incorporated/registered
Angolan Finance Minister, H.E. Vera Daves de be Angola, its institutions, and its citizens. To this in Angola regardless their ownership structure).
Sousa, recently announced that, “We are aiming end, Presidential Decree no. 271/20, of October This approach incentivizes international players
th
for the end of 2021 or the beginning of 2022 to 20 was enacted to ensure that oil and gas to set up companies inside Angola without
start the privatization process of large com pa- development not only increases Angola’s coffers, mandatory local partners. This shift prioritizes
nies such as Sonangol or Endiama”. Most like ly, but also helps develop its overall economy and the country over individuals in terms of reaping
privatization will present more formidable le gal assures a vital role for Angolan companies and benefits from foreign investment and hopefully
and administrative challenges than di vest ment. workers. Among other things, the law: will stimulate the creation of jobs and increase
training of local personnel.
New Gas Law / Gas * applies to all companies involved in the
Project industry and not just E&P operators, CONCLUSION
In May of 2018, Presidential Decree created a dy- * favors companies incorporated/registered Hydrocarbons have long been the backbone of

namic set of new rules governing natural gas in- in Angola, one of Africa’s most vibrant economies. Re cent
New legislation often takes time to take * increases registration and certification diminished the luster of hydrocarbons as its sole
dustry in Angola. worldwide events and trends, however, have
root, but in November of 2019 the “New Gas requirements for foreign players, driver, given Angola’s other potential sources for
growth and prosperity. Economic di ver si fi cation
sortium with Chevron, BP, Total and Sonangol * mandates local content clauses in contracts cannot be achieved overnight and de pends on
Consortium” (NGC), Operated by Eni in con-
was created. Last September the NGC announced and framework agreements for personnel maintenance of a strong petroleum in dustry.
the planned construction of a US$2 billion gas development, and As outlined above, Angola has recently de mon-
strated the determination, flexibility and planning
process 400 million cubic feet of natural gas * requires annual local content and human necessary to achieve its development goals.
processing plant in Soyo, with the capacity to
per day. This is an exciting start of an overdue resources plan. Hopefully, these positive steps will reap economic
process to aggressively develop Angola’s long Industry response has generally been positive to and social rewards in the near and long term.
known natural gas reserves. the new law which (i) codifies in a single document

AFRICAN POWER Mining & Oil Review Vol33 Issue 34 2021 | 67