Angola: National Oil and Gas Agency Gets 5 Percent of All Block Profits

Luanda — The National Oil and Gas Agency this year gets 5% of the profit (oil) obtained by all oil exploration blocks in Angola.

The value was considered low by the Minister of Mineral Resources and Oil, Diamantino Azevedo, judging by the need for studies of the country's hydrocarbon fields.

"This is a small amount because we need to invest more in hydrocarbon studies. It is necessary to study them judging by the decline that we registered in production", defended the official, noting that since 2011 there was no bidding for oil blocks.

Diamantino Azevedo answered some questions put by MPs of the National Assembly's Committee on Economy and Finance, in the context of the discussion of the draft State Budget2020.

Without more rigorous studies, he continued, in case of bidding goes to negotiations at disadvantages, according to the minister.

The amount of this percentage, the concessionaire, ANPG bears the operating costs of all activities, including exploration.

Recently, the Council of Ministers approved, at one of its sessions, the annual regulation of up to 10%, which now benefits the national profit oil concessionaire, which will come into force from 2020.

Profit oil is the profit made by the oil at which the cost is taken and the profit is shared between the contractor and the State.

Note that in the first half of this year, oil exports earned the state 1.9 billion Kwanzas in taxes, corresponding to $ 5.9 billion, at the average exchange rate of the period, increasing by 30,4% over the same period of 2018.

See What Everyone is Watching

More From: ANGOP

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.