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ANPG: bidding for nine oil blocks will create about 5000 jobs

The bidding for nine oil blocks should create about 5000 new jobs. The estimate was made this Monday by the National Agency of Petroleum, Gas and Biofuels (ANPG), which presented the new onshore blocks that go up for bidding on April 30.

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Hermenegildo Buila, ANPG's business director, speaking to Rádio Nacional de Angola (RNA), revealed that the jobs will not all be generated at the same time, since they will depend on the maturity of the projects.

Admitting that "the work force is intense in the petroleum activities", the official said that for the onshore activities a work force of "around 600 people per block" is estimated.

Hermenegildo Buila said that the blocks will not all be available at the same time because the activities are done in phases. However, in general, "close to five thousand jobs may be generated with the 2020 bids," he added.

The launch of the bids is scheduled for the 30th of this month, with the release of the terms of reference and the contract rules.

According to ANPG's director of negotiations, the terms of reference, the most relevant information for investors, is divided into flexible terms and fixed terms.

"We appeal to investors to bet on the flexible terms, because these are what will put them in the best 'pole position' based on our proposals. The fixed terms will be in the contract, but will not be subject to negotiation," he stressed.

According to the program, the companies must submit their proposals by 5pm on June 9th, and on the following day the submitted proposals will be publicly presented in Luanda.

On August 10, the results of the winning companies will be announced, to later enter the negotiation phase.

"We hope to have by the end of November all the concession decrees published and the authorizations to sign the concession sharing contracts," Hermenegildo Buila indicated.

In the presentation to investors, the official mentioned that the contract defined by law in the bidding process is the "production sharing contract", with specific characteristics for the development of onshore fields.

According to Hermenegildo Buila, the investment risk onshore is lower than offshore, but incentives will be given to this investment.

For these particular bids, he continued, the ANPG has created an obligation for all investors, both for those who will participate as investors and as operators, that is, a fixed entry quota of one million dollars.

"It has to do with an entry quota, all companies interested in participating in the 2020 bids will have to pay an entry quota in the amount of one million dollars. Which makes the process transparent and free of any doubts, because it will give all investors access to the same information," he noted.

According to the director of the ANPG's data office, Lumen Sebastião, the interest shown by companies is great, mainly small and medium-sized companies, including national ones, both in the operator and partner sides.

The intention to bid for Blocks CON1, CON5 and CON6, in the Lower Congo onshore Basin and Blocks KON5, KON6, KON9, KON17 and KON20, in the Kwanza onshore Basin, was announced on December 31, 2020 by ANPG, in the scope of the 2019-2025 Petroleum Concessions Allocation Strategy.

This Monday, ANPG held a session to disclose the potential of the oil blocks to be bid for, under the 2020 Bidding Process for the exploration of the Lower Congo and Kwanza Terrestrial Basins.

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