The Legal Framework on Local Content in the Oil Sector was approved, through Presidential Decree no. 271/20, of 20 October 2020, which revoked the Ministry of Petroleum Order no. 127/03, of 25 November 2003 (which included the General Governing Framework for the Procurement of Services and Goods to National Companies, by Companies in the Oil Sector).
The new statute which establishes the legal framework for the promotion and development of the activity of the Local Content in the Oil Sector applies: a) to the associates of the National Concessionaire, the entities that hold service contracts with risk, and all entities that cooperate with them in the performance of the oil operations; and b) to the Angolan Commercial Companies and Companies Incorporated under Angolan Law, which provide services and supply goods to the Oil Sector.
The purposes of this new Legal Framework are essentially: i) the protection and promotion of the competitiveness of the national industry; ii) creation of employment and training of the Angolan workforce; iii) protection of jobs of national personnel and of Angolan Commercial Companies; iv) promotion of national entrepreneurship; v) strengthening of the national business; vi) growth of national revenues; vii) transfer of technology and knowledge; and viii) promotion of social and educational development in the regions or areas of oil exploitation.
The statute also includes particularly relevant rules on [what is designated as] the “Exercise of the Local Content Activity”, namely in respect of: 1) the acquisition of goods and services from Angolan Commercial Companies and Companies Incorporated under Angolan Law; 2) the requirement for submission of a local content plan; 3) the requirement for submission of a human resources development plan; 4) the requirement for execution of a Contract-Program; and relating to 5) foreign technical assistance contracts or of management.
Concerning the commercial relations to be established between the Commercial Companies of the Oil Sector, the new Legal Framework provides for three contracting regimes / frameworks:
- Exclusivity regime;
- Preference regime;
- Competition regime.
The National Oil, Gas and Biofuels Agency (“ANPG”) is responsible for approving the lists of goods and services which become subject to the exclusivity regime and to the preference regime.
The statute also includes provisions related with the contracting procedures (of services and acquisition of goods necessary to the performance of the oil operations) which must be followed, as well as provisions concerning the administrative transgressions and penalties in case of infringement of the legal provisions contained in this new Legal Framework – including fines which may range between the amount in national currency equivalent to USD 50.000 and to the amount in national currency equivalent to USD 300.000 (or higher amounts in case of recurrence), whilst, cumulatively, ancillary sanctions may by applied.
This diploma came into force on the day of its publication.