Angola: Readjustments in Oil Sector Will Not Affect Already Signed Contracts

Luanda – Contracts and other agreements made by the Angolan State and the public oil firm Sonangol, which until now was the national concessionaire in this field, with local and foreign investors will not be affected by the readjustments being made by the government in this sector.

This comes on a document approved last Wednesday by the Cabinet Council, which outlines that these changes are intended to make the country’s oil sector more efficient and profitable.

According to the Angolan Oil minister, Jose Maria Botelho de Vasconcelos, speaking at a press conference held after the Cabinet Council meeting, the proposed changes in the sector include the creation of an agency with an integrated vision of the oil sector and independent concession and operation institutions.

He explained that so far the National Fuel Society (Sonangol) has the responsibility to represent the state in the oil sector, at the same time it is also an operator in this area. “We intend to separate these two functions”, clarified the minister.

He went on to explain that this separation will result in the attribution of the concessionaire job to an agency to be created and that will function under the direct supervision and control of the Head of the Executive, that is the President of the Republic.

He announced that it will also be created a Higher Council to monitor the oil sector and which will also respond directly to the President of the Republic.

The commission tasked with restructuring the oil sector was created last year, and it is co-ordinated by the President of the Republic, Jose Eduardo dos Santos.

SOURCE: Angola Press