According to the Minister of Mineral Resources and Petroleum, negotiations for the five legislative authorisations, which fall within the scope of exploration activities, increasing reserves, stabilising the country's oil and the sustainability of the industry, began in January 2019.
Diamantino de Azevedo explained that, at the time the contracts were negotiated, the situation of covid-19 was not facing up to, and "a situation of high competitiveness in the world oil industry".
"We are witnessing more and more the emergence of other oil producing countries and, in many cases, with better geological and infrastructure conditions than ours", said the minister.
He stressed that three of the five projects are located in the Namibe Basin, a new exploration frontier, where there are currently 12 blocks and deep waters.
The contracts with risk were negotiated between the National Agency of Oil, Gas and Biofuels and Exxon Mobile, for blocks 30, 44 and 45, and with ENI, an Italian oil company, for blocks 1/14 and the centre of the land area of Cabinda.
According to the Minister, Blocks 30, 44 and 45 are located in ultra-deep waters of the Namibe basin, "which represents an increased operational complexity and a high risk of exploration due to its geological condition, characterized by poorly exploited soils and scarce information".
Block 1/14 is located in shallow waters, in the Lower Congo basin, "an area of operational complexity, increased research risk due to its geological condition, characterized by poorly exploited soils with scarce information, making operations too costly".
Regarding the central block of the land area of Cabinda, the governor explained that it is located "on shore" and presents, from an operational point of view, difficulties of access to conduct seismic research and well drilling activities, since these are marshy, extensive areas and dense forests, covering most of the block, which makes the operations too complex and costly.
In this context, the proposed laws for legislative authorisation for the holder of the executive power to legislate on the deduction of the investment premium for petroleum income tax in the concessions of blocks 30, 44, 45, 1/14 and the centre of the land area of Cabinda have been presented.
The Minister said that, with the attribution of the fiscal incentive, it is expected to obtain several benefits for the country, namely the resumption of oil exploration in Angola, the increase of geological knowledge of the Namibe basin, the substitution of reserves and the increase of national oil production.
Diamantino de Azevedo also admitted to counting on the creation of new jobs, logistical bases and the supply of goods and services, the integration of Angolan labour in the oil industry and the increase of financial benefits for the country.
