africa Angola commodities oil

Angola: Tax breaks make way for the development of marginal oil fields

Fiscal and contractual incentives, approved by the Angolan government in 2017, are allowing the development of identified marginal oil fields that were unprofitable under existing contracts, the chairman of the board of the National Oil, Gas and Biofuels Agency (ANPG) has said.

Paulino Jerónimo, in an interview with weekly newspaper Expansão, said that in 2017 the President of the Republic challenged companies in the sector to reverse the fall in oil production, followed by setting up a working group coordinated by the Ministry of Mineral Resources and Oil, the supervisory body, along with the Ministry of Finance and Angolan state oil company Sonangol.

The team produced proposals that resulted in the publication of five decrees, one of which was on marginal fields.

The ANPG chairman stressed that the Master Plan for the coming years, until 2022, outlines the introduction of measures to mitigate the decline in production, which currently stands at around 1.4 million barrels per day.

Data released by the Organization of Petroleum Exporting Countries (OPEC) in its latest monthly oil market report showed that Angolan production stood at 1.395 million barrels per day in July, according to secondary sources and 1.259 million barrels per day according to direct communication, with monthly drops of 14,000 and 159,000 barrels per day, respectively.

On Tuesday in Luanda the ANPG launched its presentation of the international public tender for the concession of ten oil blocks in the Benguela and Namibe basins, estimated to have reserves of 7 billion barrels.

The National Petroleum, Gas and Biofuels Agency, created by the Angolan government in 2018, is the independent regulator to manage the country’s oil and gas concessions, which were previously managed by Sonangol.

Source: Macauhub

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