Angola's National Assembly has recently given the government the green light for the legislation on the exploration of gas within the framework of the "Angola LNG" gas project and on oil award for appraisal, development and production of natural gas.
The latest edition of the Angolan government newsletter State Gazette issued in Accra at the weekend said Parliament's approval "follows a government petition to the National Assembly for authorization to legislate on the matter, within the framework of the development, transportation, treatment and processing of natural gas."
The authorization also considered the need for approval of the contract for oil concession for the appraisal, development and production of natural gas in the areas of Quiluma, Enguia-Norte,
Atum and Polvi with a view to their supply for the "Angola LNG" project.
According to the document, the government is thus to grant fiscal incentives in the form of exemption, fixation and reduction of taxes, including those of customs nature and fiscal transparency mechanisms.
The government would also be responsible for creating a gas tax and setting a methodology to establish the revenues of fiscal reference resulting from products sold by the project.
As the second largest oil producer after Nigeria in sub-Sahara Africa with a crude output of 1.5 million barrels per day, Angola also abounds in natural gas resources with an estimated gas reserve between 198.1 billion and 707.5 billion cubic meters.