In a Presidential Legislative Decree dated November 20, consulted yesterday by Lusa, João Lourenço states that the new framework should enable additional investments for the “redevelopment” of fields in mature blocks and projects with the potential to rapidly boost hydrocarbon production in Angola.
The new regulations for increasing oil production in Angola ensure that investors can recover costs in the event of unsuccessful well drilling. The decree applies exclusively to exploration, development, and production activities that result in incremental production in mature blocks.
According to the National Oil, Gas, and Biofuels Agency (ANPG), “mature oil fields” are those that have been in operation for 25 years or more and/or have production equal to or exceeding 70% of proven reserves.
This special legal framework for incremental production incentives establishes exceptional measures, including fiscal advantages or reductions compared to the standard regime outlined in the Petroleum Activities Taxation Law.
Under the decree signed by President João Lourenço and published in the Official Gazette, fiscal incentives are granted in the form of reduced Petroleum Production Tax and Petroleum Income Tax rates, provided the technical, economic, and contractual conditions of production justify it.
For association contracts, the Petroleum Production Tax rate for incremental production is reduced to 15% starting from the month following the completion of the first activity outlined in the General Development and Production Plan.
In production-sharing contracts, the Petroleum Income Tax rate is set at 25% from the month following the completion of the first activity. Requests for production incentives must be submitted to ANPG, the national concessionaire.
The decree also guarantees the national concessionaire the necessary financial resources each year to cover expenses and costs related to its responsibilities in the domain of incremental production, the document states.
Source: Jornal de Angola
