Angola defines oil licensing strategy
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Angola’s Ministry of Mineral Resources and Petroleum has identified 55 blocks that will be licensed between 2019 and 2025.
After the official presentation of the new National Oil, Gas and Biofuels Agency (ANGP) board by Minister Diamantino Azevedo, the licensing strategy for the period until 2025 was released by Angolan President João Lourenço, outlining the general strategy for the allocation of petroleum concessions.
According to presidential decree 52/19, the general strategy will ensure the replacement of reserves, promoting the exploitation activity in a rational and adequate manner, as well as promote the exploitation of natural gas.
The State will also aim to promote foreign direct investment in the national industry, disseminating universally accepted knowledge, technological innovation, and governance practices.
As part of the new strategy, the first licensing round will take place during the Angola Oil and Gas 2019 conference, in Luanda, and will include ten onshore blocks in the Namibe and Benguela basin.
A further nine onshore blocks will be licensed in 2020, in the Congo and Kwanza basins. The final licensing round for 12 onshore blocks in the same basins will take place in 2023.
There will be three main models for licensing, namely public tender, limited public tender and direct negotiation, with all onshore blocks licensed by public tender. This system favours a preferred mechanism that will associate the national concessionaire with third parties to carry out oil-related operations.
In these cases, Sonangol will receive a minimum share of 20 percent in new oil concessions, receiving financing of up to 20 percent for its exploration activities, should it not be the operator. The limited public tender process is meant for abandoned fields and will be proposed to government by the ANPG.
An acquisition campaign will also be launched to attain geological and geophysical data for areas that are unexplored in the Etosha, Okavango and Cassange basins, as well as in the on and offshore Namibe basin. This will help to define new blocks.
Endorsed by the Ministry of Mineral Resources and Petroleum, Africa Oil & Power will organize the first Angola Oil & Gas conference, which will be held on June 4-6, 2019 in Luanda.