Angola’s focus on improving above-ground terms in recent years – including reduced royalty rates, and the state curbing its own take on oil earnings – has proved to be a magnet for investment. Those reforms along with the country’s vast unexplored deepwater acreage present opportunities to international oil companies and smaller players alike.
Bracewell’s Adam Blythe told African Energy that Angola was an example of the impact that regulatory and fiscal framework reforms can have in Africa.
“Angola, along with Nigeria, has been the dominant destination for M&A expenditure over the past three years,” he said. “Both countries have embarked on significant root and branch reforms to their fiscal and regulatory regimes, in an effort to modernize and encourage new investment. The terms for operating in Angola and paying tax are now well settled and understood and competitive with other African jurisdictions.”
