Image: Brussels Express
The government of Angola has announced that it will launch a new agency to handle the country’s oil and gas concessions from early next year.
Since taking office last September, President João Lourenço has been working to restructure Angola’s petroleum industry to arrest declining oil production. This move is part of a series of measures taken by the President aimed at revamping the sector, including tax breaks for the development of marginal fields and new legislation for gas rights, Reuters reported.
The National Oil and Gas Agency replaces the national oil company of Angola, Sonangol, as the granter and manager of concessions, and is designed to improve transparency, attract new investment and ultimately increase output. “The agency will be tasked with conducting bids for new oil concessions, managing production-sharing agreements as well as representing the sate in the sharing of profits from oil concessions,” said Minister of Mineral Resources and Petroleum Diamantino Azevedo to reporters on Wednesday.
Although it has the continent’s second biggest oil industry, Angola’s petroleum sector has seen a steady decline recently with oil production expected to fall to 1.5 million barrels per day this year. Production is expected to fall to 1 million barrels per day by 2030, not accounting for restructuring efforts. Angola been a member of the Organization of Petroleum Exporting Countries (OPEC) since 2007.
Angola’s Minister of Mineral Resources and Petroleum H.E. Diamantino Pedro Azevedo will speak at the Africa Oil & Power conference in Cape Town on September 5-7.