Ver Angola

Energy

Local content legislation is adequate, but it has to become reality, considers AECIPA president

The president of the Association of Contracted Companies of the Angolan Oil Industry (AECIPA) defended this Tuesday that the legislation regarding the incorporation of local content “is adequate”, but it still needs to be a reality.

: Bráulio de Brito
Bráulio de Brito  

Bráulio de Brito spoke on the sidelines of the 2nd Angola Oil and Gas Technology and Services Conference, which took place in Luanda, stressing that at the center of AECIPA's concerns is local content and how it can serve the diversification strategy of the Angolan government economy and socio-economic development.

Last year Angola published a law with local content that promotes the Angolanization of the oil and gas sector, encouraging the acquisition of national goods and services and the replacement of expatriates with Angolan workers.

For the president of AECIPA, the legislation "is adequate and was the one that was required", allowing for "a step forward" and bringing "a focus to the local service".

But, he added, "there is still something to iron out" as the legislation is still at the beginning of its implementation "and only later will the scope be realized".

Among the rough edges is the regulation of the decree: "We have a document, we need it to become reality", he underlined.

Among the main challenges facing its members, the president of AECIPA pointed out the management of covid-19 that created and creates constraints for Angola, as in other countries, as well as the lack of development of the industry that forces it to import a large part of material.

"This has a very high financial requirement that companies do not yet have," he stressed.

The conference ends on Wednesday attracting representatives of the main companies in the sector, as well as regulators, to Luanda to discuss issues such as the role of local content strategy development, the establishment of a robust and efficient value chain and the economic diversification program and the country's socioeconomic growth.