Angola Parliament Approves Oil Block Legislation Request

Angola Parliament Approves Oil Block Legislation Request

The government of Angola is closer to regulating oil block bidding as the country’s parliament approved a request for legislation. Oil minister Botelho de Vasconcelos, headed the request which was approved by 124 votes and opposed by only eight members of parliament, Macauhub reported.

According to the report, onshore oil blocks in the Lower Congo and Kwanza basins have been split for bidding. Though the process has been approved, future legislation will tighten environmental and social conflicts that stand as oil bidding challenges.

Minister de Vasconcelos spoke on current and future oil deals saying that bids will “maximise reserves to increase oil production, without affecting the primary and fundamental aim, which is to promote involvement of Angolan businesspeople in the oil sector,” Macauhub reported.

“This being the case, as part of the production target set by Angola for the next few years, Sociedade Nacional de Combustíveis de Angola (Sonangol) plans to launch an auction for 15 onshore oil blocks,” he continued.

Once approved, government structured legislation will benefit oilfield workers as training and employment recruitment will be prioritized. Increasing both localized and international investment in Angola oil is also a part of the new legislation plan, according to Macauhub.

The request for improved government legislation was approved Thursday. General oil bidding conditions are expected to have a positive impact on the country’s oil sector.