Angola is at the forefront of nurturing its domestic service industry within the oil and gas sector through robust local content regulations.
These policies are instrumental in creating revenue streams for local service firms while enhancing their overall contribution to the industry.
The Angolan government’s commitment to local content is exemplified through its Angolanization initiative, aimed at empowering national entrepreneurship by favoring local service providers in oil and gas contracts.
Enshrined in official decrees such as Law 10/79 and Decree 13/03, this initiative prioritizes Angolan employment and ownership rights, facilitates skills transfer, and promotes socioeconomic development.
Building upon existing legislation, the amendment of Angola’s Local Content Policy (LCP) in October 2020, as outlined in Presidential Decree No. 271/20, offers greater clarity on local content requirements while opening new avenues for companies operating in the oil sector.
The revised LCP defines Angolan companies, emphasizes the utilization of local service providers, outlines registration procedures for domestic firms, and mandates inclusion of local content clauses in all oil and gas contracts.
These reforms, particularly Presidential Decree 271/20, have expanded opportunities for Angolan service companies, previously overshadowed by international counterparts.
Facilitating Market Entry through Regulatory Support
Regulatory bodies like the National Oil, Gas and Biofuels Agency (ANPG) and the Petroleum Derivatives Regulatory Institute (IRDP) play pivotal roles in bolstering the success of local companies.
These entities ensure compliance with LCP requirements while fostering an enabling environment for the growth of Angolan service providers.
The ANPG’s recent launch of the ‘Competition for the Attribution of Petroleum Concessions for Bid 2023,’ open to both national and foreign entities, promotes competition and allows local service companies to engage in exploration and production activities in key basins.
Simultaneously, the Association of Angolan Petroleum Service Companies (AECIPA), representing 150 member companies, advocates for professional initiatives within Angola’s energy sector.
AECIPA addresses concerns, liaises with officials, fosters relationships, and promotes ethical business practices, aligning with the objectives of local content initiatives.
Driving Industry Growth: Success Stories
Driven by supportive policies and regulatory guidance, Angolan service companies are making significant strides in market development.
Brimont Angola, a member of AECIPA, secured a contract in 2021 to supply specialty chemicals to Sonangol, Angola’s national oil company.
Leveraging local expertise, Brimont showcased its capabilities, establishing itself as a key service provider in the sector.
Similarly, OCTOMAR, an Angolan maritime services provider, partnered with Cabship to form a diving and offshore marine support company in the Cabinda Special Economic Zone, enhancing service provision within the oil sector.
Certex Angola, an oilfield service provider, has forged partnerships with global entities like ExxonMobil, aiming to create synergies between local and international players.
