Angola José Maria Botelho de Vasconcelos

Angola to set new local content rules

LUANDA, March 23, 2017 – Angola will soon approve a package of legislation designed to increase local content in the country’s oil and gas industry, Petroleum Minister José Maria Botelho de Vasconcelos said Wednesday.

Speaking at the declaration ceremony of the Association of Angolan Geoscience and Petroleum Activity Support Companies, or AEAGSAP, the minister said the government would use legal and economic measures to develop local industry and diversify the economy by promoting local content.

In February 2017, the minister formed a working group to propose bills amending the country’s hydrocarbons legislation using the suggestions of Boston Consulting Group, PwC and Vieira de Almeida, as well as Petroleum Ministry officials to produce a proposal by April.

The government is currently enforcing Angolanisation policies that require international oil companies operating in Angola to have a workforce that is at least 70% local. Angolanisation plays a role in the tender process. International oil companies are also required to hold public tenders for services, and Angolan companies are getting preferential treatment.

Keeping expatriate workers long term has also become more difficult. The Angolan immigration department typically renews expatriate employees’ one-year work visas for a total of three years. Approval for the fourth year is only granted if the oil and gas company identifies a local worker to take over the expatriate’s position at the end of their term.

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