Luanda — The National Assembly Thursday in Luanda unanimously approved the Bill that authorises the President of the Republic, as holder of the Executive Power, to legislate on changes to the Tax Regime applicable to the Oil Exploration Concession in the Maritime Zone of the northern Cabinda Province (Block-0).
The Legislative Authorisation Bill was approved with 197 votes, no votes against and no abstentions, during the 4th Ordinary Plenary Meeting of the 2022/2023 legislative session, led by the Speaker of the National Assembly (Angolan parliament), Carolina Cerqueira.
The document aims to make more attractive the new projects and ensure the financing of investments, as well as to increase oil and gas production nationwide, taking into account the end of the concession period foreseen for December 31, 2030 and with this green light from the Parliament, its concession period is extended up to 2050.
The move also aims to leverage the socio-economic development of the Cabinda Province, through the application of tax benefits with a direct impact on the local business and on the lives of the people, increasing the level of local revenues and improving people's quality of life.
The minister of Mineral Resources and Oil, Diamantino Azevedo, said that extending the concession until 2050 will enable an investment of USD 15 billion which will guarantee the production of over 800 million barrels of oil with the State accounting for 70% and the associates for 30%.
He also said that the State would collect additional revenues of around USD 13 billion, totalling USD 27 billion.
According to the minister, the extension of Block 0 will also make it possible to increase the supply of natural gas for electricity production at the Malembo Thermal Power Plant and the potential for cost reductions of around USD 100 million.
As a example, the minister revealed that the result of the investment in the framework of the extension of the concession contract, the volume of gas provided to the Malembo Thermal Power Plant for electricity production 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.
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Block 0, where the Lifua A platform is installed, is located about 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.
