Angolan Parliament Approves Bill Drafting for Oil Concession in Block 14/23

Luanda: The Angolan Head of State received approval from the National Assembly to draft a new bill amending the oil exploration concession rules, focusing on Block 14/23. This legislative move aims to integrate development areas in Negage, Uíge province, and Menongue, Cubango Province, enhancing joint exploration efforts between Angola and the Democratic Republic of Congo (DRC). According to Angola Press News Agency, the National Assembly approved the request for authorization to amend Annexes A and B of the Concession Area of Block 14. The decision was reached unanimously during the 5th Ordinary Plenary Meeting of the 4th Legislative Session of the 5th Legislature, with 175 votes in favor. This approval grants the President of the Republic the authority to enact laws related to the oil concession amendments, intending to increase resources and generate significant revenue for Angola. Minister of Mineral Resources, Oil and Gas, Diamantino Azevedo, highlighted that the memorandum, approved by Resolution No. 19/04 on July 30, included establishing a maritime corridor for joint exploration. This corridor is strategically positioned between the South of Block 14, North of Block 15, and North of Block 30. The agreement ensures equitable sharing of interests, assigning 50% to each State. The minister further clarified that previously discovered deposits by Angolan operators would remain separate from joint exploration unless abandoned or returned to the State. The legislative proposal also seeks to ensure legal security for operations and facilitate comprehensive activities in the concession, adhering to the established annexes. Angola's involvement in the oil sector stands at 87%, a significant increase from 70% in 2017, as reported by the minister in response to parliamentary inquiries. Regarding the Cabinda Refinery, the minister stated that initial production includes specific products, with plans to expand over time. Production bonuses have reached USD 500,000 annually since production commenced. He also noted the distinction of Angola's oil production, which predominantly occurs in deep and ultra-deep waters, contrasting with Nigeria's onshore production. This necessitates higher investment costs and advanced technologies. In addition to oil concessions, parliamentarians unanimously approved legislative authorizations allowing the President to legislate on the Legal Regime of Rural Industrial Parks and the Legal Regime for Industrial Development Hubs (IDHs). This draft law aims to boost the industrial sector by revitalizing existing industrial hubs and including private entities in the management and operation of these infrastructures.