Angola’s ANPG Boosts Mature Oilfield Output with Tax Incentives Under Incremental Production Decree
Angola’s upstream regulator, the National Oil, Gas & Biofuels Agency (ANPG), is taking decisive steps to revitalize production from the country’s mature oilfields through the implementation of the Incremental Production Decree.
The policy, designed to unlock untapped opportunities in long-producing fields, offers a suite of fiscal and tax incentives aimed at sustaining national oil production above one million barrels per day.
Speaking during the Angola Oil & Gas 2025 pre-conference workshop on September 2, Victor dos Santos, Incremental Production Core Coordinator at the ANPG, outlined the benefits of the decree.
His presentation, sponsored by the ANPG, highlighted how the initiative is helping operators extend the economic life of assets that have already produced around 70% of their reserves.
“The Incremental Production Decree is aimed at recovering the economic value of mature assets, most of which have been producing for 17 years or more. Their facilities are ageing, but we identified undeveloped opportunities. By revising fiscal terms, we created conditions for operators to invest in these opportunities,” dos Santos said.
The Incremental Production Decree provides operators with improved fiscal conditions to stimulate reinvestment in existing assets. Benefits include:
Stabilizing base production and curbing decline rates.
Allowing operators to produce above-base levels.
Enhancing operational efficiency and balancing stakeholder returns.
Promoting additional exploration within producing blocks.
Unlocking stranded resources previously considered uneconomical.
A major fiscal incentive involves tax reductions. Under Production Sharing Agreements, the Petroleum Income Tax (PIT) rate has been cut from 50% to 25%. For association contracts, PIT has been reduced from 65.75% to 55.75%.
“These reductions ensure operators can extend the lifespan of producing assets and facilities, maintain employment, and create new opportunities for service providers,” dos Santos explained. “They also allow for the recovery of exploration well costs, even in cases where no discovery is made. Marginal fields within producing blocks are also covered under differentiated contractual and fiscal terms.”
Broader Policy Reforms
The Incremental Production Decree builds on ANPG’s broader effort to make Angola more attractive for upstream investment. In recent years, the regulator has introduced several key policy measures:
Decree 5/18: Allows operators to continue exploration activities within development areas, extending the life of fields beyond license terms.
Decree 6/18: Targets marginal fields with improved fiscal terms to encourage development.
Decree 7/18: Promotes the monetization of natural gas resources.
Decree 8/14: Introduces incentives to stimulate production from mature fields.
Together, these reforms strengthen Angola’s investment climate, ensuring that operators can maximize recovery from mature and marginal fields while contributing to national energy security and revenue growth.
By combining incremental production incentives with supportive policies across exploration, marginal field development, and gas monetization, ANPG is reaffirming Angola’s position as a competitive and resilient oil producer in Africa.
