Angola’s Incremental Production law comes into effect

LUANDA, December 9, 2024 – Originally presented on November 20, Angola’s Incremental Production (IP) legislation has come into immediate effect, Upstream Online reported on Friday.

Angola has many assets that are more than 20 years old and have produced more than 70% of their reserves. The legislation consequently encourages new investments into mature oilfields, especially in the form of enhanced oil recovery projects, and seeks to maintain Angola’s oil production above 1 million bpd.

The law incentivises investment by cutting the ANPG’s oil-profit share to 25%. The marginal share for the concessionaire on these mature assets is normally 80-90%. The law further stipulates that costs related to exploration wells are recoverable or deductible from existing or future production from any block development.

Nina Birgitte Koch, Equinor’s head of operations, said “I strongly believe the new terms are able to increase investment and boost oil and gas production in Angola, as they improve the commerciality of developing fields in mature blocks and under-developed areas.”

It is estimated that around 500 million additional barrels will be recovered and field life will be extended by 20 years due to the IP legislation.

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