Luanda - The National Assembly on Thursday unanimously approved the request for legislative authorization from the President of the Republic on the Added Tax Regime applicable to investor companies in the New Gas Consortium (NCG) Concession Area.
The request for legislative authorization as the Head of the Executive Branch, received 154 votes in favour, no votes against and no abstentions, during the 4th Ordinary Plenary Meeting of the 2nd Legislative Session of the 5th Legislature.
This is the first non-associated gas development project in Angola, which will initially involve a total investment of four billion US dollars.
Presenting the document, the Secretary of State for Treasury, Ottoniel dos Santos, said that non-associated gas is outside the oil exploration industry and the aim is to boost it with the implementation of the new project.
Ottoniel dos Santos emphasized that over the period of the project's validity, it is expected that approximately 1.3 billion dollars will be raised and that contributions to the training of national staff will be in the region of 200 million US dollars.
The approval of this new legal tool will allow the state to collect revenue from the payment of direct taxes applicable to all players in the NCG and LNG project chain and to promote the development of the country's non-associated gas reserves.
Explanations of vote
The MPLA parliamentary group, which voted in favor of the legislative authorization, recognizes the strategic importance of the new NCG Gas Consortium for the diversification of the economy and national energy security.
According to MP Érica de Carvalho Aires, the implementation of this project will bring significant benefits to the country, with the creation of a favorable business environment as well as safeguarding the interests of Angolans.
The UNITA parliamentary group said it voted in favor of the document because it is a service contract with risk and presupposes the existence of a specific framework that guarantees legal certainty and economic stability.
According to MP Agostinho Camuango, the approval of the new legal and fiscal framework could stimulate investment and provide greater benefits that enable the state to collect revenue from the payment of direct taxes applicable to all players in the NCG (New Gas Consortium) project chain.
"The UNITA Parliamentary Group voted in favor of seeing the development of gas reserves promoted and the government’s announced intention to create a domestic natural gas market that satisfies the public interest become effective," said the MP.
Authorization of tax incentives for blocks 49 and 50
The National Assembly unanimously approved two requests for legislative authorization from the President of the Republic on the tax incentives applicable to the concession areas of Blocks 49 and 50, located in the ultra-deep waters of the Lower Congo Basin.
Blocks 49 and 50 appear to be very challenging projects, as they involve exploration in ultra-deep waters, which represents technical and operational complexity and a high research risk characterized by complex installations and geology, which can extend below the saline formations.
Based on the terms of the contract in force, the Legislative Authorization expects the projects to promote new discoveries, increase oil production, mitigate the reduction in oil reserves, indirect socio-economic benefits and increase the direct and indirect national workforce. DC/SC/ADR/AMP
