Announcement of Angola License Rounds
London, 25 February 2019: The newly formed ANGP (National Oil and Gas Agency) of Angola has, on Thursday 21st February, announced License Rounds for the countries onshore and offshore blocks.
According to Presidential Decree 52/19, which defines the General Strategy for the Allocation of Petroleum Concessions, the concessions will be awarded in the processes of Public Tender, Restricted Public Tender and Direct Negotiation.
The aims of the General Strategy are to ensure the replacement of reserves and the promotion of exploration activity, to promote the exploitation of natural gas through the inclusion of minimum work programs and to promote foreign investment in the industry through the sharing of knowledge, technological innovation and governance practices.
The License Rounds will be held over a period of 7 years, starting in 2019 and culminating in 2025; specific blocks and basins will be assigned to these License Rounds.
The blocks offered by Public Tender are those that are deemed exploration blocks that have not formerly been abandoned and restored to the state. In the form of public bidding described as preferential mechanism, the concessionaire (ANGP) associates with third parties to carry out joint petroleum operations. In these awards, Sonangol (as State Oil Company) may assume a share of 20% in the concession and will enjoy rights for this share to be financed by international associates or the operator.
In 2019, the State will offer by Public Tender Blocks 11, 12, 13, 27, 28, 29, 41 and 43 of the Namibe Basin together with Block 10 of the Benguela Basin.
In 2020, the State will offer by Public Tender Blocks CON1, CON5, and CON6 within the Onshore Lower Congo Basin together with Blocks KON5, KON6, KON8, KON9, KON17 and KON20 of the Onshore Kwanza (Cuanza). This will be followed in 2023 by a second phase where Onshore Blocks CON2, CON3, CON7, KON1, KON3, KNO10, KNO13, KON14, KON15 and KON19 will offer by Public Tender.
The blocks offered by Restricted Public Tender are those that have formerly been relinquished or abandoned.
In 2021, the State will offer by Restricted Public Tender Blocks 7, 8, 9, 16, 33, 34 together with open parts of Blocks 31 and 32. In 2025, Blocks 22, 24, 25, 26, 30, 35, 36, 37, 38 and 39 will be offered by Restricted Public Tender.
In 2019, by the process of Direct Negotiation, the State will offer Blocks 6, 30, 44, 45, 46 and 47 with negotiations expected to be concluded in the same year. It should be noted that Blocks 30, 44 and 45 were subject to a Memorandum of Understanding (MoU) signed by ExxonMobil in December 2018, indicating that oil company may now formally license these blocks.
The ANGP has also announced bidding rounds on 2023 for the Interior Etosha, Okovango, Cassange and Namibe Basins. These bidding rounds will be proceeded by the promotion of campaigns to collect geological and geophysical data and, in 2022, the division of the basins into blocks.
2018 Angola Oil and Gas Laws
On 10th May 2018, the National Assembly approved three new oil and gas laws to stimulate exploration activity and increase hydrocarbon production.
Natural Gas Exploitation; Law No 8/18 states that the President can legislate for the creation of new tax incentives to promote gas exploration, within the existing framework, under the Law on the Legal and Fiscal Regime to be assigned to the Natural Gas Exploitation.
Marginal Field Development; Law No 6/18, the Law on the Adequacy of Contractual and Fiscal Terms in Marginal Concession Petroleum Concessions, grants the President authorisation to legislate on contractual and fiscal terms for marginal fields.
Incentivised Exploration; Law No 7/18, the Law to Define the Legal Regime Applicable to the Additional Research Activities in the Petroleum Concession Development Areas during Production Period, which grants the President powers to legislate on the legal regimes applicable to additional exploration activity during the development and production phases of a concession.
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