The Angolan government is due to approve legislation to regulate local content and introduce clear, feasible and non-bureaucratic procedures in the oil industry in order to allow an effective and growing participation by the domestic industry, said on Monday in Luanda the Minister of State and Head of the Civil House of the President of the Republic.
Frederico Cardoso, speaking at the opening of the 2nd African Conference on local content in the oil and gas industry, said it was imperative to end the regulatory dispersion on local content in Angola, which is covered by nine different laws.
The adoption of this legislative plan will offer security and legal certainty to the business operators and provide opportunities for technical, technological, employment and human resource development and to promote the development of the oil and gas industries in the country, according to Angolan state news agency Angop.
The Minister of State recalled that the crisis brought about by the fall in the price of oil on the international market made many oil projects unviable and led to a substantial reduction in the activity of many companies supplying services to the oil industry, resulting in massive redundancies in a sector that represents around 35% of GDP and over 90% of the country’s exports.
To reverse the situation, the government approved a set of macroeconomic and other specific measures on the relations between the State through its agents and the companies operating in the oil sector, in order to correct procedures, eliminate some constraints, improve the business environment and readjust the sector to maintain the profitability of the oil sector in Angola.
The second conference on local content in the African oil and gas industry held for the second time in Luanda is promoted by the African Petroleum Producers’ Organization (APPO).