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Angola Upstream Fiscal and Regulatory Report - Government Introduces Incentives to Spur Upstream Recovery

Angola Upstream Fiscal and Regulatory Report - Government Introduces Incentives to Spur Upstream Recovery

Summary

Angola Upstream Fiscal and Regulatory Report - Government Introduces Incentives to Spur Upstream Recovery, presents the essential information relating to the terms which govern investment into Angola’s upstream oil and gas sector.

Majority of upstream oil and gas activities in Angola are governed by production sharing contracts, whereby contractors engage with Sonangol, Angola’s sole concessionaire. Other types of contracts available are RSAs, under which contractors are paid through a share of production, as well as a small number of concession agreements signed decades ago.

At standard terms, Angola’s PSA regime offers mid-level returns compared to the regimes offered by regional peers. Although the undiscounted state take is higher than that offered by the PSA regime in Nigeria, Angola’s main African rival in the upstream sector, the progressive elements of the Angolan regime mean that it can allow the contractor a higher rate of return.

The report Angola Upstream Fiscal and Regulatory Report - Government Introduces Incentives to Spur Upstream Recovery, sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Angola’s upstream oil and gas investment climate.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Angola
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Angola.
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Angola’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making.


  • Regime Overview
    • Table Regime Overview
    • Table Figure 1: Regime Flow Chart - Production Sharing Agreements
    • Table Figure 2: Regime Flow Chart - Risk Service Agreements
    • Table Figure 3: Regime Flow Chart - Concession Agreements
  • State Take Assessment
    • Table Figure 4: Angola, Indicative NPV10/boe, IRR and State Take Comparison - Regional
    • Table Figure 5: Angola, Indicative NPV10/boe, IRR and State Take Comparison
  • Key Fiscal Terms - Production Sharing Agreements
    • Royalties, Bonuses and Fees
      • Bonuses and Contributions
        • Table Angola, Additional Contributions (US$ million), Blocks 20 and 21
      • Surface Fees
      • Training Fee
    • Cost Recovery
      • Cost Recovery Limit
      • Recoverable Costs
      • Investment Allowance (Uplift)
    • Profit-Sharing
      • Rate of Return Mechanism
        • Table Angola, Profit-Sharing Framework, Block 20/11
        • Table Angola, Profit-Sharing Framework, Block 05/06
        • Table Angola, Profit-Sharing Framework, Blocks12 and 13 (2008)
      • Cumulative Production Mechanism
        • Table Angola, Profit-Sharing Framework, 2015 Onshore Model (Blocks CON 1, CON 5, KON 8, KON 9, KON 17)
        • Table Angola, Profit-Sharing Framework, 2007/8Onshore Model (Cabinda Central Block)
        • Table Angola, Profit-Sharing Framework, 1979 Model (Block 2)
      • Price Cap Excess Fee
    • Natural Gas
    • Direct Taxation
      • Petroleum Income Tax
    • Indirect Taxation
      • Consumption Tax
      • Customs Duties and Fees
    • Incentives for Marginal Developments
      • Criteria and Application
      • Incentivized Fiscal Terms
    • State Participation
  • Key Fiscal Terms - Risk Service Agreements
    • Royalties, Bonuses and Fees
    • Payment in Kind
      • Table Angola, RSA Payment in Kind, Block 9
      • Table Angola, RSA Payment in Kind, Block 21
    • Taxation
      • Petroleum Production Tax (PPT)
      • Petroleum Transaction Tax
      • Petroleum Income Tax
      • Deduction and Depreciation
      • Production Allowance
        • Table Angola, Production Allowance, Block 9
        • Table Angola, Production Allowance, Block 21
        • Table Angola, Production Allowance, Block 48
      • Investment Allowance
    • Incentives for Marginal Developments
      • Table Angola, Production Allowance under Marginal Development Regime
  • Key Fiscal Terms - Concession Agreement
    • Royalties, Bonuses and Fees
      • Bonuses and Fees
      • Petroleum Production Tax
        • Table Angola, Petroleum Production Tax Rates, Concession Agreements
    • Taxation
      • Petroleum Income Tax
      • Petroleum Transaction Tax
      • Deductions and Depreciation
      • Allowances for Petroleum Transaction Tax (PTT)
        • Table Angola, Investment Allowance (Deduction from PPT)
        • Table Angola, Production Allowance (Deduction from PPT)
    • State Participation
  • Regulation and Licensing
    • Legal Framework
      • Table Figure 3: Angola, Legal Framework
      • Governing Law
      • Contract Type
      • Title to Hydrocarbons
    • Institutional Framework
      • Table Figure 6: Angola, Institutional Framework
      • Licensing Authority
      • Regulatory Authority
      • National Oil Company
    • Licensing Process
      • Licensing Rounds
      • Prequalification
      • Bidding
    • License Terms
      • Duration
        • Table Angola, Representative Contract Periods
      • Work Obligations
      • Purchasing Rights
      • Local Content
        • Table Angola, Local Procurement Regimes (Decree 127/03)
      • Management of Operations
  • Outlook
  • Appendix
    • References
      • Table References
    • Contact Us
    • Disclaimer

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