Angola streamlining oil and gas work

Angola is trying to streamline oil and gas administration, reports Maja Bovcon, senior Africa analyst at Verisk Maplecroft.

Angola is trying to streamline oil and gas administration, reports Maja Bovcon, senior Africa analyst at Verisk Maplecroft.

A recent decree by President Joao Lourenco “will most likely speed up the process of acquiring new oil blocks and the procurement of services and goods,” Bovcon writes in a risk note.

The legislation scraps the prequalification phase for oil and gas companies applying for acreage. In the past, allocation of blocks by state-owned Sonangol took more than a year.

The legislation also raises value thresholds above which purchases or contracts for services require public tender of approval by Sonangol.

The purchase threshold has been increased to $5 million from $750,000.

The threshold for contracts for services and goods has risen to $1 million from $250,000.

“The fact that the new legislation has been adopted as a presidential decree—which is faster than passing it through the parliament—indicates Lourenco’s commitment to speed up the reform of the oil and gas sector,” Bovcon writes.

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