Luanda: The Angolan State anticipates generating approximately USD 7.3 billion in tax revenue from oil block concessions, as stated by Minister of Mineral Resources, Oil and Gas, Diamantino de Azevedo, during a session in Luanda on Thursday.
According to Angola Press News Agency, the announcement came amid the National Assembly's debate and vote on the draft Legislative Authorisation Law. This law seeks to empower the President of the Republic to legislate on granting additional tax incentives for oil blocks 19, 17/25, 32/21, 33/24, 34, and 35. Minister Azevedo highlighted that successful exploration in these blocks could potentially attract investments amounting to USD 37.3 billion.
The legislative initiative proposes signing bonuses of USD 38 million, payable upon contract signing, and development bonuses of USD 38 million, due within 30 days of the final investment decision. Additionally, a production bonus of USD 30 million is expected, payable within 60 days of the initial crude oil lifting.
A total of USD 200 million is allocated for social development projects and scholarship programs to benefit Angolan citizens. Minister Azevedo assured that the State's rights would remain secure, with the State projected to collect at least 60 per cent of the income generated by these blocks, alongside the bonuses and social contributions outlined in the risk service contracts.
The implementation of tax incentives is projected to yield immediate benefits, including contributions to social projects, enhanced geological knowledge, strategic reserve replenishment, conversion of oil potential into economic value, mitigation of declining national production, creation of skilled jobs facilitated by Shell's return to Angola, and sustainable growth in State tax revenues over the medium to long term.
