Angola to provide tax exemption on gas exploration

Angola is to offer companies a tax break for natural gas exploration to stimulate investment in the industry, according to Angolan press reports.

Uchenna Izundu
OGJ International Editor

LONDON, Mar. 28 -- Angola is to offer companies a tax break for natural gas exploration to stimulate investment in the industry, according to Angolan press reports.

The nation's parliament has voted for the measure and the Jornal de Angola said that Sonangas, the gas subsidiary of state owned Sonangol, will offer 10-year gas exploration rights to Eni Angola Exploration BV, Gas Natural West Africa SL, Galp Exploration Petrolifera SA, and Exem Energy BV.

The authorities hope that tax exemption will encourage growth of the domestic gas market.

There is also increasing pressure to boost the number of Angolans working in the petroleum sector. The parliament requests that oil companies are to commit money to a special fund that will be used for training and developing local talent. No details were given on what sums oil companies are to pledge.

Contact Uchenna Izundu at uchennai@pennwell.com.

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