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AfrOil COMMENTARY AfrOil

Angola’s most productive oilfields lie offshore (Photo: Eni)

Local content in Angola

President Lourenço has issued a decree outlining the new rules for local content in oil and gas projects

THIS article is the first in an occasional series the same purposes as the previous regulations.
providing overviews of local content (LC) regu- That is, it aims to ensure that a larger por-
WHAT: lations and requirements in individual African tion of total investment in oil and gas projects
Angola’s government has states. flows into Angola itself, thereby helping to create
replaced the existing reg- Angola’s government has taken another step wealth and to diversify the national economy. It
ulations adopted between towards revamping the legal regime governing also strives to expand the range of opportunities
2003 and 2009. its oil and gas industry. More specifically, it has available to local companies by requiring inter-
approved a new law on local content require- national oil companies (IOCs) to work with
WHY: ments in the sector. local partners.
Presidential Decree According to press reports, the new law is Additionally, it encourages Angolan entre-
271/20 defines Angolan known as Presidential Decree 271/20. It was preneurs to take the steps needed to build local
companies more narrow- approved by President João Lourenço on Octo- capacity by giving them more access to com-
ly than the earlier rules.
ber 20, 2020, after around two years of discus- panies that need to hire contractors in order to
sion amongst officials in Luanda. The decree execute their projects.
WHAT NEXT: replaces the existing body of law governing local The document makes these intentions clear.
Some IOCs may object to
the changes, which will content, which consists of the following: Order In it, President Lourenço states that his govern-
limit the opportunities 127/03, which took effect in November 2003, ment wants Angolan commercial entities to
open to JVs involving and eight other measures approved between play a role in the development of the country’s
Angolan and foreign 2003 and 2009. oil and gas reserves. To this end, he says, the new
investors. legal regime encourages IOCs to obtain goods
Similarities: strategy and goals and services from Angolan suppliers and to hire
Presidential Decree 271/20 is designed to serve Angolan employees rather than expatriates.

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