ANPG Details Fiscal Incentives Under New Incremental Production Decree
The ANPG outlined the key points of the Incremental Production Decree during the pre-conference of Angola Oil & Gas 2025 on September 2.
Angola’s upstream regulator – the National Oil, Gas and Biofuels Agency (ANPG) – is revitalizing production in the country’s mature oil fields through the implementation of the Incremental Production Decree. During the Angola Oil & Gas 2025 pre-conference – held before the official opening of the conference on September 3 – Victor dos Santos, Coordinator of Incremental Production at the ANPG, presented the fiscal and tax incentives provided for in the decree. The session was sponsored by the ANPG.
“The Incremental Production Decree aims to recover the economic value of assets, considering that they are already mature and have produced about 70% of initial reserves. As they have been in operation for 17 years or more, their infrastructure is aging. We realized that there are still undeveloped opportunities in these assets. We implemented terms that allow operators to invest in those opportunities,” emphasized Victor dos Santos.
Designed to maximize production in Angola’s mature fields, the decree is a central part of the Government’s strategy to maintain production above one million barrels per day and enhance the attractiveness of reinvesting in existing producing assets. Key benefits include: stabilizing base production; enabling operators to produce above base capacity; increasing operational efficiency; balancing stakeholder interests; promoting further exploration in existing producing assets; and unlocking potential previously considered unviable under the former fiscal terms.
“There is a tax reduction available for operators. Under Production Sharing Contracts, the Petroleum Income Tax (PIT) was reduced from 50% to 25%, while in association contracts, the PIT was lowered from 65.75% to 55.75%,” explained the executive.
These incentives make it possible to extend the life of producing assets, as well as associated infrastructure and equipment, ensuring job retention and stimulating activity for service providers. By increasing production, Angola enhances the recovery factor and maximizes revenues for all involved parties. Under the Incremental Production Decree, operators can recover exploration well costs, regardless of whether discoveries are made. Marginal fields within producing blocks also benefit from differentiated contractual and fiscal terms.
The Incremental Production Decree joins other measures introduced by the ANPG to attract investment in different types of assets – from large-scale fields to marginal assets and non-associated projects.
“We implemented Decree 5/18 to allow operators to continue exploration activities within development areas. This decree was created as an incentive, considering that some fields reach maturity during the development phase. Thus, it ensures the extension of the field’s life beyond the production license,” he continued.
Adding that “the second policy we implemented was Decree 6/18, targeted at marginal fields, with better fiscal terms that allow companies to develop these assets. Decree 7/18 focused on gas monetization. We also implemented incentives through Decree 8/14 to stimulate additional production in mature fields. This helps attract more investment.”
