Angola has approved a new Local Content/Angolanization Regime for the Oil Sector
Angola has approved a new Local Content/Angolanization Regime for the Oil Sector (the “Presidential Decree 271/20”). What does this mean for you?
The main significant change is the definition of an Angolan company. Previously an Angolan company was defined as companies incorporated in Angola, with at least 51% share capital held by Angolan citizens or Angolan companies
In the new regime Angolan companies are defined as companies incorporated in Angola, with 100% share capital held by Angolan citizens or Angolan companies.
Other changes to keep in mind are:
1. Local Content Plan must be submitted to the National Concessionaire (ANPG) for monitoring of local content-related activities.
2. Sanctions: Non-compliance with the New Local Content Rules is now punishable with fines that may range between the USD 50.000,00 and USD 300.000,00 in domestic currency.
Additional penalties may also be applied, such as
1. activity interdiction for a period of 1 (one) to 2 (two) years;
2. suspension of the authorization for operation of establishment; or
3. prohibition of entering into new contracts.