africa Angola commodities oil Tax

Angola approves tax relief for marginal oil deposits

The approval of the statement of marginal discovery of the Pala, Ástrea and Juno deposits in Angola’s Block 31, through the publication of Executive Decree 157/19 in the Diário da República national bulletin, opens up new investment opportunities, according to the National Oil and Gas Agency (ANGP).

The ANPG also said in a statement issued on Monday in Luanda that the Executive Decree also approves tax benefits to companies that invest in those deposits.

The Executive Decree follows Decree-Law 6/18 on the development of marginal oil fields, which approved a principle of tolerance and contractual flexibility for the development of marginal resources, making use of discovered marginal resources and their conversion into reserves and actual production.

The ultimate goal of this Decree Law is to promote the growth of Angola’s oil industry, as well as to secure additional tax revenue for the state.

Angola, which is Africa’s second largest oil producer after Nigeria, at one point produced 1.8 million barrels of oil per day, but due to a lack of investment in the last 10 years there has been a decline in production, which now stands at 1,4 million barres per day.

Source: Macauhub

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