The following chapter featured in Energy: Oil & Gas 2023 and is awaiting update from the firm

The Constitution of the Republic of Angola establishes under Article 16 that the natural resources existing in the soil, subsoil, territorial sea, in the exclusive economic zone and in the continental shelf are the property of the state and are included in its private domain, as per the Petroleum Law.

The oil and gas legislation establishes the rules to explore petroleum and gas (provided the gas exploration is made under the oil field licence) activities which must be carried out under a prospecting licence or pursuant to a concession award, noting that all mining rights are exclusively assigned to the National Concessionaire, the National Agency for Oil, Gas and Biofuels (ANPG). As such, private sector companies may only conduct petroleum activities if they join up with ANPG.

The Ministry of Mineral Resources, Petroleum and Gas (MIREMPET), regulated trough Decree No 159/20, of 4 June, is the main governmental authority that controls, executes and implements government policy that deals with the activity of exploration and production of minerals and energy resources, including petroleum, gas and biofuel. It performs day-to-day governance, implements oil and gas sector policies and is responsible for the issuance of the prospecting licence.

The National Agency for Oil, Gas and Biofuels (ANPG), created through Presidential Decree No 49/19, of 6 February, subsequently amended by Presidential Decree No 1/20, of 6 January and Decree No 145/20, of 26 May,  is the national Concessionaire which holds the exclusive mineral rights to gas and petroleum operations. ANPG aims to regulate, supervise and implement the execution of petroleum activities with reference to to oil, gas and biofuels. ANPG has powers to negotiate and enter into contracts for the exploration and production of petroleum and gas.

The national concessionaire is The National Agency for Oil, Gas and Biofuels (ANPG).

The principal petroleum laws and regulations in force in Angola are Law 10/04, of 12 November, as amended by Law 5/19 (“Petroleum Law”).

Other relevant legislation is as follows:

• Decree 1/09, of 27 January (“Regulation on Petroleum Operations”);
• Law 13/04, of 24 December, as amended by Law 6/19 (“Taxation of Petroleum Activities”);
• Law 2/2012, of 13 January (“Angolan Oil and Gas Foreign Exchange Law for the Oil Industry”);
• Presidential Decree 91/18, of 10 April, which establishes the framework for the abandonment and decommissioning of wells (“PD 91/18”);
• Law 11/04, of 12 November (“Petroleum Customs Law”);
• Presidential Legislative Decree 5/2018, of 18 May, which establishes the framework for the activities involved in the exploration of Development Areas;
• Presidential Legislative Decree 6/18, of 18 May, rectified by rectification 13/18 of 31 July, which establishes the framework applicable to the development of marginal fields;
• Presidential Legislative Decree 7/18, of 18 May (Legal and Tax Framework Applicable to the Surveying, Exploration, Assessment, Development, Production and Sale of Natural Gas in Angola – “PLD 7/18”);
• Presidential Decree 159/20, of 4 June, which approved the MIREMPET’s statute;
• Presidential Decree 86/18, of 2 April, which provides the rules and procedures applicable to public tenders within the scope of petroleum operations;
• Law 28/11, of 1 September (“Oil & Gas Distribution and Commercialisation Law”), which approved the legal framework applicable to the distribution and trading of oil and gas;
• Presidential Decree 208/19 of 1 July, which approved the rules applicable to the refining of crude oil, the storage of petroleum products and their transportation by pipeline or the operation of wholesale and retail markets;
• Law 26/12, of 22 August (“Oil and Gas Transportation and Storage Law”), which approved the law on Oil and Gas Storage and Transport;
• Executive Decree 425/21, of 16 September, which approved the rules, procedures and deadlines for the provision of information by agents, entities and service providers that operate in the oil products sector system in Angola;
• Presidential Decree 5/18, of 18 May, establishes the framework for the research activities involved in the Development Areas of petroleum concessions; and
• Law No 271/20, of 20 October (“Local Content Law”).

Petroleum operations may only be carried out by a prospecting licence issued by MIREMPET or through a concession decree issued by the government, which are generally attributed through a public tender process.

ANPG is the holder of all mineral rights and may enter into partnerships with any private investor interested in the exploration of petroleum resources in order to share its technical knowledge and financial capacity (provided it obtains prior approval of the government) by means of a:

• corporation;
• consortium;
• production sharing agreement (being the most common); or
• risks services agreement.

Concession contracts are administrative contracts approved by the government and published in the official gazette.

As stated above, petroleum operation can be carried out by a concession or a prospecting licence.

Concession

MIREMPET, through an executive Decree (provided it obtained the government’s prior authorisation) defines the concession areas and publishes an announcement on ANPG’s official site and in the newspapers inviting interested parties to bid (120 days before the public tender). Subsequently, a public tender shall be launched for the interested parties to submit their bids in accordance with the requirements covered under the bid, specifically the technical and financial capacity that the candidates must fulfil.

If there are no interested parties or if the government does not award a concession, then ANPG may enter into direct negotiations with any national or foreign companies of proven competence and technical and financial capacity, provided it is granted the prior approval by MIREMPET to launch a new public tender for the award of the concession.

Prospecting Licence

A domestic or foreign company with the necessary technical and financial capacity may apply for the issuance of a three-year prospecting licence (which may be exceptionally extendable) before MIREMPET (see 2.8 Other Key Terms: Upstream).

In addition, companies carrying out petroleum operations (either upstream or downstream) need to obtain the relevant licence for the activity to be carried out, which may include, amongst others:

• licence for the transportation of pipelines and associated infrastructure, which includes an environmental licence;
• licence for distribution/trade of petroleum activities granted by IRDP;
• licence facilities for oil derivatives and purifying of crude oil to be requested before the Oil Derivatives Regulatory Institute (IRDP);
• environmental impact assessment;
• site abandonment and rehabilitation plan;
• the Oil & Gas Distribution and Commercialisation Law establishes that the marketing of oil products is made under competition systems which are subject to licensing; and
• importation licence.

The typical fiscal terms for upstream activities applicable to all entities, both national and foreign, which carry out petroleum operations on national territory are determined in terms of the ring-fencing rule and are the following:

• the Petroleum Production Tax at a rate of 20%, which can be reduced to 10% in special circumstances;
• the Petroleum Revenue Tax at a rate of 65.75%, except in the cases of a PSA in which the applicable rate is 50%;
• the Petroleum Transaction Tax at a rate of 70%;
• the Surface Area Charge which corresponds to USD300.00 per square kilometre; and
• the contribution towards the training of Angolan staff.

Please see 2.3 Typical Fiscal Terms: Upstream.

In addition, the most relevant profit tax regime in upstream operations is the contractual obligation of payment of profit oil by the entity to ANPG, in accordance with the agreed terms of the partnership.

As explained in 2.1 Forms of Private Investment: Upstream, all the mineral rights belong to the state which reserves the right to participate in petroleum operation through ANPG. Any investor interested in exploring in Angola must proceed in association with ANPG, which must hold at least 50% of the participation rights, except in duly justified cases.

The government aims to promote the socio-economic development of the country through several measures, as follows.

Goods and Services

The Petroleum Law establishes that the entities operating in the petroleum sector must:

• acquire material, equipment, machines and other consumer goods produced nationally provided that the cost is not 10% higher than the imported goods (including the transport, insurance and other custom duties); and
• hire national service providers, provided that they are of the same quality and the cost is not 10% higher than the international market.

These measures are subject to the supervision of the MIREMPET.

Employment and Training

As per the Petroleum Law, entities must hire only Angolan citizens for all categories and functions, except if there are no qualified and experienced national workers for the relevant position.

Moreover, national and foreign workers must be treated in the same manner and are entitled to the same social and labour conditions.

Decree No 17/09, of 26 June, further regulates the rules and procedures applicable to the recruitment, integration and training of workers within the oil sector, under which the entities must submit a Human Resources Development Plan.

General Obligations

ANPG and its associates must co-operate with the national authorities in the public actions to promote the socio-economic development of the country.

The Local Content Law

The Local Content Law aims to promote the internal market competition within the petroleum sector, create jobs and qualified workers, protect jobs for national workers, as well as Angolan companies and promote social development (including the education) in the region or areas of the operations, amongst others.

These aims are accomplished through the following measures, amongst others:

• obligation to contract national citizens and provide the relevant training;
• obligation to acquire national goods and services that are covered under the regime of exclusive goods and services;
• obligation of developing and submitting an annual Local Content Plan to ANPG; and
• obligation of submitting to the Ministry of Petroleum an annual Human Resources Development Plan, by 31 October. A copy of this Agreement must be submitted to ANPG within 15 days of its development.

Please note that the Petroleum Concession covers the period for development and production.

A commercial discovery encompasses the following steps:

• reporting to the MIREMPET – operators must report all discoveries to the MIREMPET within the timeframe established under the Agreement;
• preliminary demarcation of the deposit by ANPG; and
• preparing and submission of a Development Plan in order to initiate production.

The ANPG and its associates must prepare a general development plan for production that must be submitted to the MIREMPET for its approval, within three or 12 months of a petroleum or gas commercial discovery, respectively.

The approval of a development plan that covers more than one area will be contingent on the approval of MIREMPET.

As illustrated, an upstream licence may be granted by means of a prospecting licence or a petroleum concession.

As such, the prospecting licence shall contain the following characteristics:

• the area of the licence;
• identification of the licence holder;
• term of the licence – which shall be issued for three years and an application for extension before the MIREMPET may be granted;
• rights and obligations of the licence holder;
• description of the works to be undertaken, timeframes and budget; and
• definition of the ownership regimes of the date resulting from the prospecting.

The licence may be extinguished, as follows:

• termination;
• waiver provided the entity has complied with all its legal and contractual obligations until said date; or
• expiration in the cases in which the licence has expired, dissolution of the licence holder and verification of a resolutive condition foreseen under the licence.

The request to extend the licence must be submitted before the MIREMPET.

The licence costs USD10,000.

The transfer of interests to third parties under an upstream licence awarded under a concession agreement is subject to the prior authorisation of the MIREMPET (through an official executive decree) and must observe Angola’s law and the rules specified within the agreement, specifically the transferee must be of proven competence, and technical and financial capability.

If the transfer to a third party of a stake or share represents more than 50% of the share capital, then ANPG has a pre-emption right. If ANPG chooses not to exercise this right, Angolan companies that are a party to other concession agreements at the time of the transfer are entitled to exercise such pre-emption right.

The transfer of interests made to an affiliate is not subject to the MIREMPET’s authorisation, provided the assignor remains joint and severely liable.

The general rule is that the transfer is exempted from taxes. Nonetheless, taxes shall be applicable to the gains that result from the transfer.

Under the Petroleum Law the parties are entitled to freely dispose of their share production. Nonetheless, restrictions may apply when necessary for the satisfaction of domestic consumption or in the event of a national emergency.

Angola is a member of OPEC (Resolution 95/06, of 13 December) and in April 2023 Angola recorded 1.06 million barrels per day (bpd) of crude production, surpassing Nigeria as a top African crude oil producer.

Non-official information is that Angola’s new OPEC production target for 2024 is 175,000 b/d.

In 2009, the Angolan government, by means of Resolution No 105/09, of 19 November, proceeded to adopt measures to liberalise the downstream sector. The government aimed to restructure and recover the infrastructure of refining, storage, transport, distribution of fuels, reduction of imports and reorganise the domestic fuel market.

The government intended to create rules for market access in a transparent and equitable way for all economic interested agents. As such, a series of objectives were established, as follows:

• to increase the efficiency of the refining, storage, transportation and distribution chain;
• to stimulate and guarantee national coverage of distribution;
• to establish a transparent pricing system;
• to encourage competition in the distribution activity;
• promote national cohesion by guaranteeing the same sales conditions (maximum price) for petroleum products throughout the territory;
• free access to the distribution activity; and
• to define the framework of the regulator and its areas of intervention as a market regulator.

Law 28/11 of 1 September sets forth the general provisions applicable to the exercise of the activities of crude oil refining and storage, transportation, distribution and marketing of petroleum products.

Presidential Decree 173/13, of 30 October, establishes the procedures and defines the requirements for licensing and inspection of petroleum product storage facilities, petroleum-derived liquid and gaseous fuel supply facilities (Fuel Supply Stations), and distribution networks and branches connected to liquefied petroleum gas tanks, subject to the regime established in the technical regulations regarding the design, construction, technical operation, and safety of LPG distribution networks and branches.

Presidential Decree 208/19, of 1 July, establishes the legal regime to which the activities of crude oil refining, import, reception, procurement, storage, transport, distribution, marketing and export of petroleum products are subject, as well as the procedures and rules applicable to the public service obligations, planning and licensing of the facilities of the Oil Derivatives System of the Republic of Angola.

Most operators of Angolan refined oil products choose to enter into an open dialogue with the IRDP and the National Concessionaire.

Most of the entities involved in the importation and distribution of oil products tend to be affiliates of the National Concessionaire or are oil companies that hold participatory interests in block concessions in Angola and establish joint ventures with the National Concessionaire. In other words, the distribution of fuel in Angola is done in joint venture or in partnership with the Angolan authorities.

The reality of the country points to a regular shortage and sometimes even lack of fuel at gas stations and for this reason the state is the main supporter of this market.

According to the June 2022 gas station mapping made available by IRDP there are 900 operational gas stations in Angola, belonging to the major operators, namely Sonangol, Pumangol, Sonangalp, Total Energies Marketing Angola (TOMSA) and other small individual operators referred to as White Flag Operators.

Of the filling stations in operational status, 43% are White Flag, 37% are owned by Sonangol, 9% by Pumangol, 6% by Sonangalp and 5% by TOMSA. Of all filling stations in operational status, 54% are greenfield and 46% are containerised.

Note that the processing of petroleum products and the purification of crude oil are subject to the licensing of the facilities, granted by the IRDP.

The E&P companies in partnership with the Block Operators and the Operators of the Maritime Port Terminals carry out the exportation of crude pursuant to the Lifting Agreements.

The export of crude oil is subject to a special customs and tariff regime established for the oil sector, thus the export of crude oil is subject to the payment of 0.1% of the declared general customs duties on crude oil and is exempt from VAT.

The creation of the IRDP as the new regulator was an important milestone for downstream activities (2019). According to Presidential Decree 208/19, the activity of distribution of petroleum products is carried out on a market basis, and the transportation pipelines and associated infrastructure are regulated by the state. Transportation activities are subject to authorisation by MIREMPET.

The granting of a licence is based on the credibility, experience and competence of the applicant, as well as its financial management and technical capacity to build and operate pipeline facilities in Angola. Oil and gas pipeline operators have the exclusive right to operate the infrastructure for the transportation of oil and natural gas. The licence authorises its holder to occupy the areas necessary to implement the activities established by the licence.

To contract the pipeline transportation services, the National Concessionaire, its associates and all other companies must hold a bidding procedure.

The licence can only be granted to legal entities that meet, among others, the following requirements: (i) technical, logistical and operational capacity; and (ii) economic and financial capacity.

In addition, an environmental licence issued by the Ministry of the Environment is required. The company or consortium interested in obtaining the rights to build the pipeline must have the necessary permits issued by the competent entities to grant land rights.

The licence for pipeline construction is granted by MIREMPET for a period of five years and can be extended for one year. The licence to operate pipelines – from the outlet flange to processing facilities, petrochemical plants or the export terminal – is granted by MIREMPET for a period of 25 years and may be extended one or more times for specified periods.

The Executive Branch may declare areas required for the construction of pipelines and associated infrastructure to be of public interest – for the purposes of expropriation and civil servitude. In these cases, the holders of rights over the land must be indemnified. The licensee has the right to occupy, in accordance with the legislation in force and with respect to existing land rights, the areas necessary for the implementation of the works included in the licence. Licensees can negotiate the land rights with the respective owners and with the competent real estate and environmental authorities. The pipelines must be registered before the competent real estate registry office.

The marketing of petroleum products is done on a competitive basis, which is, however, subject to licensing under Law 28/11, and may be carried out through wholesaling or resale.

Regarding the importation of petroleum products, since there are no specific regulations for the procedures for importing refined petroleum products into the Angolan territory, it is necessary before starting any importation procedure to obtain the Petroleum Importer Licence and each import operation will follow an independent procedure with the IRDP.

The import licence is subject to the following requirements cumulatively:

to have a total storage capacity of not less than 40,000 m3, by means of its own facilities or by entering into agreements for this purpose – at least 10,000 m3 of the said capacity must be dispersed in logistics facilities in inland provinces;

have a distribution capacity of not less than 1,000 m3, either through its own facilities or by concluding agreements to that effect;

have a minimum of 20 filling stations covering 60% of the provinces for the import of liquid fuels or at least four LPG filling stations spread over four provinces for the import of gaseous fuels;

hold at least 5% of the market share;

compliance with the legal and technical standards applicable to the exercise of the activity; and

presentation of the local content integration plan.

In addition to the above, there is a special regime under which the applicant may obtain an import licence from IRDP provided that it meets the following requirements:

has a total storage capacity of not less than 40,000 m3, through its own facilities or by entering into agreements for this purpose (at least 10,000 m3 of said capacity must be dispersed in onshore logistics facilities);

has a minimum of 20 filling stations covering 60% of the provinces for the import of liquid fuels, or at least four LPG filling units distributed in four provinces for the import of gaseous fuels;

is in compliance with the legal and technical standards applicable to the exercise of the activity; and

most importantly, the applicant undertakes to comply with all other outstanding requirements within five years, with annual targets to be mutually agreed upon with the IRDP.

Note that the importation of petroleum products is subject to a number of additional obligations and responsibilities related to insurance, storage facilities, transportation, market research for resale of the imported products and financial capacity, as well as having to have a relationship with commercial banks in order to guarantee payment for the imported products.

The importer must always inform the IRDP of orders, certificates of origin and arrival of petroleum products, as well as international prices and payment to suppliers.

Midstream and downstream operators are not covered under the Taxation of Petroleum Activities, as such they are subject to the general tax rules, as follows:

• corporate income tax;
• capital gains tax over dividends and interests;
• value-added tax;
• personal income tax in reference to workforce; and
• mandatory training levy contribution.

Please see 3.4 Fiscal Terms and Commercial Arrangements: Midstream/Downstream.

In addition, tax incentives may be granted, amongst others, for the reduction of Corporate Income Tax and Capital Gains Tax.

There is no specific legal regulation in force that establishes special rights for national oil and gas companies in the downstream.

As mentioned above (please see 3.1 Forms of Private Investment: Midstream/Downstream and 3.2 Downstream Operations Run by a National Monopoly: Rights and Terms of Access) most operators in the downstream sector are affiliated with the National Concessionaire and are mostly owned by Angolan-based entities, hence being classified as Angolan companies.

The existing trend is for service providers in the downstream sector to have local participation taking into consideration the existing right of preference to hire local service providers.

Notwithstanding, it is certain that the state understands that these activities require a large investment and therefore there is a need for foreign investment.

The legislation establishes a priority of at least 51% for companies based in Angola and whose share capital is held by Angolans.

In the oil sector, companies that provide services to E&P and/or oil industry companies are not formally required to meet the 51% requirement but are required to be registered before MIREMPT. Thus, in practice these service companies will need to meet the 51% requirement.

With this, the trend that has been growing is for joint venture companies to be owned by Angolans in a percentage greater than 51% and the remainder by foreigners.

Furthermore, the Petroleum Law states that in petroleum operations, the national concessionaire and its associates must acquire equipment, machinery and consumables from local sources, as well as hire local labour, provided they are of equal quality to those available abroad, are delivered on time, and do not cost more than 10% of the foreign price.

Currently, the structural model of downstream licensing, as well as the activities of this sector carried out in Angola, are represented by few participants due to the following reasons:

• this sector is founded on the import of refined oil products – Angola lacks development of refinery activities;
• prices of refined oil products are subject to fixed prices set by the state; and
• market sales are assisted by the state to avoid supply interruptions.

At this stage, Angola’s downstream sector lacks both technical training of the workforce and a large amount of financing, which drives away foreign investment.

The Constitution of the Republic of Angola establishes that the territory that is part of the public domain may be transferred to single or legal entities. Notwithstanding, the government has power to expropriate private land and infrastructure, which may only take place during the upstream operations.

As such, the acquisition of property rights over territory that belongs to the state is governed by the Land Law – Law No 9/04, of 9 November, by the General Land Concession Regulation – Decree No 58/07, of 13 July, by the Civil Code and by the Land Registry Code, as well as by complementary legislation.

The establishment of the surface right is admissible in favour of individuals and legal entities, national or foreign, with head offices in Angola or abroad, in rural and urban land included in the private domain of the state or local authorities by means of, amongst others, asset deals, public auctions and share deals.

The price the acquirer of surface rights will have to pay shall be determined in the agreement, which can correspond to one single instalment or one annual instalment.

The state is the entity responsible for regulating transport pipelines and associated infrastructure. Transportation activities are subject to authorisation by MIREMPET.

The granting of a licence is based on the credibility, experience and competence of the applicant, as well as its financial management and technical capacity for the construction and operation of pipeline facilities in Angola.

The operators of oil and gas pipelines have the exclusive right to operate the infrastructure for the transportation of oil and natural gas. The licence authorises its holder to occupy the areas necessary to implement the activities established by the licence.

According to the Oil & Gas Distribution and Commercialisation Law, the construction and operation of pipelines are subject to licensing by MIREMPET. In order to contract for pipeline transportation services, ANPG and its associates and all other companies must conduct a bidding process.

The licence can only be granted to legal entities that meet, among others, the following requirements:

• technical, logistical and operational capacity; and
• economic and financial capacity.

In addition, an environmental licence issued by the Ministry of the Environment is required. The company or consortium interested in obtaining the pipeline construction rights must have the necessary permits issued by the entities competent to grant land rights.

The licence to construct the pipeline is granted by MIREMPET for a period of five years and may be extended for one year. The licence to operate pipelines – from the outlet flange to the processing facilities, petrochemical plants or the export terminal export terminal – is granted for a period of 25 years by MIREMPET and may be extended one or more times for specified periods.

Downstream licences do not provide free access rights to third parties on privately built infrastructure. Such licences are typically granted to affiliates of the National Concessionaire or other forms of association, and if real property rights have already been allocated for the downstream licence to third parties, no access is given to such infrastructure, especially when it comes to distribution and storage of refined petroleum products.

What has been done in this sector is to visit the plot of land, make an agreement with the possible holder of precarious land use rights and at a later stage apply for a surface right (all this before applying for the downstream licence).

The most significant restriction on product sales in the local market is the price of refined petroleum products determined by the government through the enactment of legislation, due to the fact that Angola relies deeply on imports to sustain the internal market (as a result of lack of development to the point of consumption and refinery of local crude oil).

Within the internal market, the supply of refined petroleum products is provided and carried by the government, which adopts measures to mitigate the prices and grant subsidies.

Please see 3.3 Issuing Midstream/Downstream Licences.

According to the legal system established in the Oil and Gas Transportation and Storage Law, the transfer of licences for the transportation grid is subject to authorisation from MIREMPET (the same authorisation is not required if performed between affiliated companies).

In reference to the distribution grid, the transfer of assets is also subject to a written request to be submitted to the licensor.

Licences are awarded to applicants on an individual basis. Transfer or assignment of downstream licences or any change of control of the applicant or licensee is not a common procedure and is subject to approval by the licensing authority. This approval is dependent on the new licensee proving the continuity of the activities or the improvement of those activities.

As such, it is understood that the transfer or assignment to third parties is dependent on the recognition of the capacity, technical knowledge and financial capacity of the interested party.

It is worth noting that this is not a common practice in Angola.

Angola’s Investment Law does not apply to the oil sector, so E&P companies can operate in Angola without having to present and submit for approval a private investment project. Notwithstanding, most oil companies operating in Angola are represented by representative offices in order to have a local physical representative.

The holders of stakes in the block concessions are, as a rule, foreign entities.

Nonetheless, note that the Investment Law applies to foreign oil service providers and suppliers if they intend to operate locally for more than one year or intend to implement a physical presence in Angolan territory. In such case, they will be considered as ordinary private investors and will be subject to the general obligations to invest in Angola and present an investment project in order to obtain the applicable investor visas and benefits.

Sanctions do not apply in Angola.

The legal framework applicable to the environment in Angola is fundamentally provided by the Environment Framework Law, Law No 5/98, of 19 June, consecrated in Article 39 of the Constitution of the Republic of Angola.

Other relevant statutes are, among others, the following:

• Decree No 39/00, of 19 October (“Regulation of environmental protection during petroleum activities”);
• Executive Decree No 8/05, of 5 January (“Regulation on Management, Removal and Deposit of Waste in Petroleum Activity”);
• Executive Decree No 11/05, of 12 January (“Oil Spill Alert Procedures”);
• Presidential Decree No 117/20, of 22 April (“General Regulations on Environmental Impact Assessment Impact Assessment and Environmental Permitting Procedure) Licensing Procedure”);
• Decree No 51/04, of 23 July (“Environmental Impact Assessment”);
• Decree Law No 4/09, of 18 May (“Organic Statute of the Ministry of Environment”);
• Decree-Law No 1/10, of 13 January (“Environmental Audits”);
• Executive Decree No 234/13, of 18 July (“Providential Action Plan for Urban Waste Management”);
• Presidential Decree No 2013/19, of 25 June (“Legal Regime of Landfills”);
• Law No 10/04, of November 12 (“Petroleum Activities Law”);
• Decree-Law No 183/22, of 22 July (“National Strategy for the Angola Sea”);
• Presidential Decree No 282/20, of 27 October (“Angola Hydrocarbons Exploration Strategy 2020-2050”); and
• Law No. 8/20, of 16 April, as amended by Law 12/21 (“Law of Environmental Conservation Areas”).
• The Ministry of Culture, Tourism and Environment (MCTA) is the body responsible for developing and co-ordinating the country’s environmental policy.

There are also other auxiliary bodies to the Ministry, as follows.

National Directorate for Prevention and Evaluation of Environmental Impacts (DNPAIA), which, among others, is also responsible for reviewing and commenting on environmental impact assessment proposals including reviewing the registration of projects and the terms of reference submitted.

National Waste Agency.

In recent years, the government has become more concerned with environmental conservation. Consequently, it has been incorporating measures for the conservation, sustainable use of biological diversity and the fair and equitable distribution of biological resources for the benefit of all Angolans into its development policies and programmes.

The new Biodiversity Strategy and Action Plan (2019-2025) are interconnected in 12 strategic goals, which are intended to be integrated into comprehensive programmes that promote the conservation and sustainable use of biodiversity, namely:

• reduce the pressure on biodiversity and promote its sustainable use;
• strengthen the network of conservation areas including representations of the different biomes and ecosystems of Angola;
• promote scientific research and the dissemination of information on biodiversity;
• reinforce education and awareness for sustainability;
• strengthen the Implementation of International Agreements on Biodiversity;
• strengthen the role of local communities in biodiversity management;
• mobilise funds for biodiversity conservation;
• restore biodiversity in the cities, towns, villages and neighbourhoods of the country;
• strengthen institutions linked to the environment;
• strengthen the development of specific legislation and its implementation in harmony with the international agreements and the SADC Region;
• manage, co-ordinate and monitor the actions for biodiversity conservation; and
• restore degraded forests and ecosystem services.

Under the Petroleum Law, petroleum operations must be conducted prudently and with due regard for the safety of persons and facilities, as well as the protection of the environment and the conservation of nature.

In carrying out their activities, licensees, the National Concessionaire and its associates must take the necessary precautions for environmental protection, with a view to ensuring its preservation, particularly with regard to health, water, soil and subsoil, air, preservation of biodiversity, flora and fauna, ecosystems, landscape, atmosphere and the cultural, archaeological and aesthetic values.

For this purpose, the licensees, the National Concessionaire and its associates must submit to the Ministry in charge, within the legally established deadlines, the plans required by the legislation in force, specifying the practical measures that must be applied in order to prevent damage to the environment, including environmental impact assessment studies and audits, landscape recovery plans and contractual and permanent structures or mechanisms for environmental management and auditing.

It is the Ministry’s responsibility to monitor and supervise all activities undertaken by licensees, the National Concessionaire and its associates in connection with petroleum operations. If it is found that a particular petroleum operation may endanger the lives of people or the preservation of the environment, the supervising Minister, after hearing the licensees, the National Concessionaire and its associates, may:

• order the suspension of the petroleum operation in question;
• order the removal of all persons from the locations deemed dangerous in co-ordination with the competent state agencies; and
• suspend the use of any machinery or equipment that could jeopardise the aforementioned values.

The regulations on environmental protection for the Angolan petroleum sector are applicable to the National Concessionaire and E&P companies through the Operator of the Block concessions and other oil companies, which are required to submit a series of updated documents for the execution of Petroleum Activities in any new facility and/or to modify any existing facility, such as:

• environmental impact assessment;
• oil spill prevention and response plans;
• waste management, removal and disposal plan;
• operational discharge management plan; and

site abandonment and rehabilitation plan.

Note that the oil sector in Angola is composed mainly of concessions of offshore blocks (although there has been a growing trend of opening for investments in onshore areas). For this reason, most environmental requirements and regulations are related to oil spill prevention and response plans.

Presidential Decree No 91/18 of 10 April, which governs the rules and procedures of abandonment activities, and the decommissioning of oil and gas installations (onshore and offshore) establishes, among others, the following obligations for all entities under contract (the downstream sector is outside the scope of this Decree):

Mandatory Provisional Abandonment Plan;

Mandatory Definitive Abandonment Plan submitted to the National Concessionaire;

dismantling and delivery of facilities, including inspection and audit activities 18 months prior to the term of the Development Area; and

creation and funding of specific escrow account to deposit abandonment funds to address corresponding costs.

The draft plan must be updated every three years and the final plan must be approved (no later than 12 months prior to abandonment) by the National Concessionaire and MIREMPET.  Abandonment and decommissioning procedures are subject to the (detailed) technical specifications contained in the annexes to the above-mentioned Presidential Decree.

The Petroleum Law further states that in the case of a decision for abandonment, the National Concessionaire and its associates must proceed with the proper abandonment of the well or wells in question, also being obliged to develop other actions for the abandonment of facilities and other assets and to proceed with landscape rehabilitation, in accordance with current legislation and subsidiarily with normal oil industry practice.

These actions must be carried out according to a detailed plan to be prepared by the National Concessionaire and its associates and approved by the supervising Ministry.

Despite being a signatory to several international climate policy conventions, such as the United Nations Framework Convention on Climate Change, the Montreal Protocol on Substances that Deplete the Ozone Layer, the Kyoto Protocol and having implemented the National Strategy for Climate Change, there is no specific legislation regulating climate change. For legislation on environmental protection, see 5.1 Environmental Laws and Environmental Regulator(s).

A concession may be wholly or partially redeemed by the state, on proposal of the Ministry of Mineral Resources, Oil and Gas, for reasons of public interest, upon payment of fair compensation to be determined on a case-by-case basis.

In case it is verified that a certain petroleum operation may endanger the lives of people or the preservation of the environment, the Minister of Mineral Resources, Petroleum and Gas, after hearing the licensees, the National Concessionaire and its associates, may:

order the suspension of the petroleum operation in question;

order the removal of all persons from the places considered dangerous in co-ordination with the competent state agencies; and

suspend the use of any machinery or equipment that could jeopardise the aforementioned values.