Angola: Tax incentives boost marginal fields

Luanda – Angolan government’s fiscal and contractual incentives launched in 2017 allow the development of identified marginal fields, which were not profitable under existing contracts, said the CEO of National Oil, Gas and Biofuels Agency (ANPG), Paulino Jeronimo.

The ANPG manager said the only way to replace falling oil reserves in the country is to bet on new exploration, stressing that the contractual and fiscal incentives from unprofitable fields will boost oil production in the country.

In an interview with Jornal ExpansAPound o on August 30, Paulino Gaspar said that in 2017 the President of the Republic challenged industry to change the fall in production.

As result, a working group was created coordinated by the supervising Ministry, with Sonangol and Finance Ministry.

The team produced proposals that resulted in the publication of five decrees, one on marginal fields, which has been in force for a year and with operators working on these findings.

As for the Master Plan for the coming years, going until 2022, the CEO said that foresees improvements to mitigate the production decline, whose current production is not far from around 1.4 million barrels/day.

Created in 2018, ANPG is an independent regulator body tasked with managing the country’s oil and gas concessions, previously run by the public oil company Sonangol.

Angola is the second largest oil producer in Sub-Saharan’s Africa , with a daily output of 1.4 million barrels, behind Nigeria with 1.7 million barrels/day.

Source: Angola Press News Agency