Africa-Press – Angola. The National Assembly (AN) approved, this Thursday, unanimously, the Bill that authorizes the President of the Republic, as Holder of the Executive Power, to Legislate on the alteration of the Tax Regime Applicable to the Oil Concession in the Maritime Zone from Cabinda (Block-0).
The Legislative Authorization Bill was approved with 197 votes in favour, no votes against and no abstentions, during the 4th Ordinary Plenary Meeting of the 1st Legislative Session of the V Legislature, chaired by the president of the hemicycle, Carolina Cerqueira.
The Legislative Authorization Bill aims to make new projects more attractive and guarantee the financing of investments, as well as the increase in oil and gas production in the national territory, bearing in mind that the end of the concession period is scheduled for December 31, 2030. With the new legislative authorization, the concession period is extended to 2050.
The diploma aims to leverage the socio-economic development of the province of Cabinda, through the application of tax benefits with a direct impact on the local business fabric and on the lives of the people, increasing the level of own income and improving people’s quality of life.
The Minister of Mineral Resources and Petroleum, Diamantino Azevedo, said that extending the concession to 2050 would allow for an investment of US$15 billion, which should guarantee production of more than 800 million barrels, with the State 70 percent and associates 30 percent.
He also indicated that the State will raise additional revenues of USD 13 billion, making a total of USD 27 billion.
According to the minister, the extension of Block 0 will also allow for an increase in the supply of natural gas for the production of electricity at the Malembo Thermal Power Station and the potential for cost reductions of around US$100 million.
By way of example, he noted that, as a result of the investment made in light of the extension of this concession contract, the volumes of gas supplied to the Malembo Thermal Power Station for the production of electricity will increase from around 11 million cubic feet to 26 million cubic feet, allowing three of the four turbines installed there to run on gas.
Block 0, where the Lifua A platform is installed, is located around 30 miles off the coast of Cabinda.
A total of four concessionaires operate in Block 0, namely Cabinda Gulf Oil Company, a subsidiary of Chevron, Sonangol EP, Total Petroleum Angola Limited and ENI Angola Production BV. Chevron is the second largest concessionaire in Block 0 after Sonangol EP.
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