Angola’s Oil and Gas Sector: Regulation and Law Insight

LAGOS (Capital Markets in Africa) – Angola holds almost 9.5 billion barrels of proved crude oil reserves and 308.1 billion cubic meters of natural gas reserves, according to the latest estimates from the 2017 Annual Statistical Bulletin of the Organisation of the Petroleum Exporting Countries. Angola is the second-largest oil producer in Sub-Saharan Africa, behind Nigeria. In the oil and natural gas industry, the focus is on inter alia ensuring the “Angolanisation” of upstream activities; implementing the liberalisation of the market and creating a new legal and regulatory framework; enacting a natural gas regulatory framework; reinforcing existing refining capacity; finishing short-term projects such as pipelines and railways; and defining a new tariff model and removing fuel price subsidies.

Oil / Minerals’ ownership and access restrictions / Angolan State ownership of national resources
Under the Angolan Constitution and the Land Law, the land and its natural resources within the Angolan jurisdiction are original property of the State. As such, the Angolan State shall determine the access conditions for concession of prospection and exploration rights of its mineral resources. The Act 10/04 of 12 November (“Petroleum Act”) provides that all oil fields and gas in the onshore and offshore areas of the territory; internal waters; territorial sea; exclusive economic zone; and on the continental shelf, belong to the public domain of the State, as well as the oil deposits.

In this context, the Angolan State granted exclusive mining rights to the National Concessionaire, Sonangol – Sociedade Nacional de Combustíveis de Angola, E.P. (“Sonangol”), which cannot, under any circumstances, sell, in total or part, the mining rights, under penalty of such acts being considered null and void.

An extract from Bouncing Back: African Oil and Gas. Please download by clicking: INTO AFRICA PUBLICATION: MAY 2018 EDITION.

Contributor’s Profile
Irina Neves Ferreira joined ALC ADVOGADOS in 2013. She is a lawyer with considerable international experience, especially in the Angolan jurisdiction. In this market she has been involved in operations concerning private investment, insurance law, real estate (including the support to the negotiation of lease contracts for petrol companies), tax law, foreign exchange law and customs. She is also highly experienced in corporate compliance attained throughout her experience as counsel for the EMEA (Europe, Middle East and Africa) region in the international compliance team of a multinational company in the IT area. She holds a Law Degree (Law Faculty of Nova University of Lisbon, 2003). Postgraduate Studies in Information Society Law (Law Faculty of the University of Lisbon, 2007).

Alukeny Neínda joined ALC ADVOGADOS in December 2017. Alukeny Neínda has assisted several national and international companies in a wide range of legal practice mainly in corporate and commercial law, private investment, real state and migration. She holds a aw Degree (Catholic University of Angola, 2014). Post Graduate studies in Corporate Law, Tax Law and Corporate Accounting (IDET, Law Faculty of the University of Coimbra, 2017).

Liliana Canudo Cruz joined MLGTS Legal Circle in November 2015. Liliana is an Associate focusing on cross border aspects of corporate, finance, insurance, foreign investment, telecommunications, energy (in particular mining and Oil & Gas) matters in the Portuguese, Angolan and Mozambican jurisdictions. She holds a Law Degree (Law Faculty of the University of Lisbon, 2012). Master’s Degree in Forensics (Law Faculty of the Portuguese Catholic University, 2014).