Africa-Press – Angola. The specialized committees of the National Assembly (AN) approved this Tuesday, in Luanda, the reports and joint requests for legislative authorization from the President of the Republic in the oil and gas sectors.
This is the Value Added Tax Regime applicable to Oil Investing Companies in the Concession Area of the New Gas Consortium (NCG) and the tax incentives applicable to the concession areas of blocks 49 and 50, located in ultra-deep waters. of the Lower Congo Basin.
The three requests for legislative authorization from the President of the Republic, as Holder of Executive Power, will be voted on, later this month, at the Plenary meeting of the National Assembly.
The implementation of the New Gas Consortium is subject to the verification of certain suspensive conditions, including the approval of a special differentiated tax regime.
According to the justification report, the approval of a differentiated fiscal framework is fundamental, as the implementation of the NCG Project, based on a risky service contract, has a high cost that depends on the existence of a legal and fiscal framework that provides the necessary legal certainty and economic stability for the project.
The approval of this new legal framework will allow the State to raise revenue from the payment of direct taxes applicable to all participants in the NCG and ALNG project chain, promoting the development of the country’s non-associated gas reserves.
Blocks 49 and 50 appear to be quite 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 be extend below the saline formations.
The background report highlights 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 associated financial requirements.
The Legislative Authorization intends, based on the terms of the contract in force, that the projects promote new discoveries, increase oil production, mitigate the reduction in oil reserves, indirect socioeconomic benefits and increase the direct and indirect national workforce.
Deputy Lurdes Caposso, from the MPLA, valued the approval of requests for legislative authorization by the AN committees, competent for those Angola wants to increasingly attract industries and demonstrate that it has a more attractive business environment for investments.
He made it known that some oil fields from the Angola LNG project, approved in 2007, had been transferred to the New Gas Consortium.
The natural gas exploration process in Angola began in 2007, considered a new way of collecting revenue.
Likewise, deputy David Kissadila, from UNITA, emphasized that they voted in favor of the requests for legislative authorization because there is widespread concern among Angolans regarding their economy.
“The economic crisis that the country is experiencing leads us, in fact, to seek synergies that allow the collection of revenue for the country and reinforce our economic capacity”, he maintained.
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