The President of the Republic of Angola, in his capacity as Holder of Executive Power, through Presidential Decrees no. ºs 109/23, 110/23 and 111/23 published on 3 May 2023, updated the contractual and fiscal terms previously approved on the mining rights for prospection, exploration, appraisal, development and production of liquid and gaseous hydrocarbons in the Concession Areas of Blocks 44, 30 and 45 30, 44 and 45 (located in the Namibe Basin) that it had granted to the National Concessionaire, Agência Nacional de Petróleo e Gás ("ANPG").

 

The recently published legal diplomas are part of the General Strategy for the Allocation of Oil Concessions to be implemented by the Angolan Executive for the period 2019 - 2025 and are generally aimed at mitigating the impact of the decline in oil production in the country, by making the contractual and fiscal terms of the oil blocks in Angola more flexible than those accepted internationally, with the purpose of attracting more investment for exploration and new oil and gas discoveries.

 

Amongst the various alterations which the statutes indicate, we highlight the inclusion of differentiated Production Premium rates in the event that any well is drilled in the referred Blocks (44, 30 and 45) to a water depth in the drilling location equal to or greater than 2,000 (two thousand) meters, and if the referred Block is located more than 250 kilometres away from a production facility at the time of the execution of the Contract, depending on the Internal Rate of Return of the Consortium.

 

For better reference, below is the illustrative table with the comparative information:

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It is worth highlighting that, recently, the ANGPG, as a result of the publication and entry into force of the above mentioned legal diplomas, signed a Memorandum of Understanding with the entities involved in the process, namely the General Tax Administration ("AGT"), the multinational company Exxon Mobil and Sonangol.

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For more information about the update of the Concession for Blocks 30, 44 and 45 please contact us.