Luanda - The specialized committees of the National Assembly (AN) approved Tuesday in Luanda the joint opinion reports that authorizes the Angolan President to legislate the oil and gas sectors.
It implies legislation on Value Added Tax Regime applicable to Oil Investing Companies in the New Gas Consortium (NCG) Concession Area and the tax incentives applicable to the concession areas of Blocks 49 and 50, located in the ultra-deep waters of the Lower Congo Basin.
The three requests for legislative authorization from the President of the Republic, in his capacity as head of the executive, will be put to the vote in March at the plenary session of the National Assembly.
The implementation of the New Gas Consortium is subject to the fulfillment of certain conditions, including the approval of a special tax regime.
According to the report, the approval of a differentiated fiscal framework is fundamental, as the implementation of the NCG Project, based on a service contract with risk, has a high cost that depends on the existence of a specific legal and fiscal certainty and economic stability necessary for the project.
The approval of this new legal framework will allow the state to collect revenue from the payment of direct taxes applicable to all players in the project chain and to promote the development of the country’s non-associated gas reserves.
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.
The report emphasizes the need to implement cutting-edge technology for drilling and production, the lack of facilities (platforms) and/or oil blocks in production in adjacent areas and the associated financial requirements.
Based on the terms of the contract in force, the Legislative Authorization aims 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.
The ruling MPLA MP Lurdes Caposso praised the approval for legislative authorization, since Angola aims to attract more and more industries and demonstrate that it has a more attractive business environment for investment.
The MP of the main opposition party, David Kissadila stressed that they voted in favor of the requests for legislative authorization because there is widespread concern among Angolans about their economy.
"The economic crisis that the country is experiencing means that we need to look for synergies that will allow us to raise revenue for the country and strengthen our economic capacity," he said.
Natural gas exploration in Angola began in 2007 and is considered a new way of collecting revenue.
DC/VIC/AMP
