Angola has officially launched the first phase of its new six-year oil licensing strategy. The licensing round was launched by CEO of the National Agency of Petroleum, Gas and Biofuels (ANPG) Paulino Jerónimo during the opening ceremony of an event dubbed the Angola Oil & Gas Conference 2019.
Oil licensing is the act of giving licenses for geographical areas at land or sea to a company or a joint venture allowing them to search for commercially feasible deposits of petroleum.
Angola’s oil licensing launch was attended by Angola’s President João Manuel Gonçalves Lourenço and Minister of Mineral Resources and Petroleum Diamantino Azevedo. The licensing process covers a total of 10 of the country’s mining blocks, including Blocks 11, 12, 13, 27, 28, 29, 41, 42 and 43 in the Namibe Basin, and Block 10 in the country’s Benguela Basin.
“The promotion of the blocks is starting immediately. The ANPG will embark on an international roadshow in September to engage with investors in Houston, London and Dubai prior to opening the tendering process in October,” Jerónimo explained.
“Our message to the global oil industry is simple: Angola is open for business. We are ready to seriously engage with existing and new players, be they international oil companies, national oil companies, independents and mid-sized operators and get them to explore in Angola,” he continued.
The move is likely to cement Angola’s position as Africa’s hottest oil and gas frontier.
It is the first public auction in Angola since the pre-salt layer blocks auction of 2011, and the first of a series of licensing rounds that will see as many as 55 blocks put up for public bidding or direct negotiations until 2025.
It follows a Presidential Decree released last February to boost exploration, maximize reserves replacement and ultimately increase national production of oil & gas. The strategy maps the auctioning of 31 blocks under public bidding in 2019, 2020 and 2023. It is also the first to take place under the oversight of the ANPG.
Going forward, the ANPG will soon unveil the dates for the forthcoming roadshows where the Agency will present technical information on the blocks to be offered through announcements on its website and in national and international media.
The Agency is also launching Angola’s first-ever Marginal Fields Bidding Round, which is attracting new and existing African players, international independents and medium-sized operators via the offering of more attractive fiscal terms.
“Our new regulatory framework provides tax incentives for the exploration of marginal fields,” Jerónimo added.
“Over the years, Angola has made several discoveries deemed too uneconomical for development. Our new fiscal and contractual terms are focused on incentivising the exploration and production of such reserves for both African and international medium-sized companies,” he continued.
According to the National Agency for Petroleum, Gas and Biofuels, these upcoming licensing rounds, along with the Marginal Fields Bidding Round, will place Angola as the number one African exploration frontier for years to come.