"The executive decree [of the Government of Angola] recently published corresponds to a legal formality that reflects the closure of an investment cycle by OOGA [Odebrecht Oil and Gas Angola] in Block 16, which was effectively formalized more than a year ago" , said a note from the company's communications advisor sent to Lusa.
The company added that its operations in the oil sector in Angola began in 2002, with the participation in 15 percent of the consortium responsible for the exploration studies for Block 16, but "despite the large investments over more than 16 years, the Block 16 proved to be outside Odebrecht's business strategy in Angola for the following years ".
The same company concluded that the change in its strategy in the country motivated "negotiations [talks] for divestment that culminated in its definitive exit from the investment in July 2019".
The Government excluded Odebrecht Oil and Gas Angola from the Block 16 production sharing contract for non-compliance with contractual and financial obligations and transferred the company's stake to the French multinational Total.
In an executive decree published in the Diário da República, signed by the Minister of Mineral Resources, Petroleum and Gas, Diamantino Azevedo, Odebrecht, which holds a 15 percent interest in the Block 16 production sharing contract, no longer fulfills the requirements required by law .
Odebrecht is "in a situation of non-compliance with the financial obligations related to the payment of its share of costs incurred by the contractor group" in the operations in this block, hindering "the normal execution of oil operations", the Government said.
The non-compliance provides the national concessionaire with "just cause" to terminate the production sharing contract in relation to Odebrechet "with the consequent free reversion of the corresponding participatory interest for itself".
Bearing in mind that the national concessionaire and Sonangol have waived the preemptive right over Odebrecht's 15 percent, this participatory interest will be transferred to Total E&P Angola Block16 A / S.
After the exclusion, the contractor group will have the following constitution: Total E&P Angola Block16 A / S, 65 percent, Total E&P Chissonga, Ltd, 15 percent and Sonangol Pesquisa e Produção, 20 percent.
Total is the main oil operator in Angola, where other multinationals such as BP, Chevron and Eni are present.
