Oil Sector Embraces Equality: Level Playing Field for National and Foreign Companies

Oil Sector Embraces Equality: Level Playing Field for National and Foreign Companies

National oil companies must now compete on an equal footing with foreign companies, complying with all recruitment, training, integration, and local development rules imposed by the Ministry of Mineral Resources, Petroleum, and Gas (MIREMPET).

The statement was made by the Secretary of State for Mineral Resources, Jânio Corrêa Victor, during the opening of the celebration of the first program contracts with seven out of 1,540 registered national companies. This event marks the implementation of Presidential Decree on Local Content, No. 271/20, dated October 20, which has been in effect for three years.

Until now, only foreign companies were obliged to sign program contracts, giving them a competitive advantage over national companies.

According to Jânio Corrêa Victor, MIREMPET remains committed to preserving the national interest of the Oil and Gas sector, which includes the integration of Angolan entrepreneurs, the obligation to hire Angolan labor, and the promotion of “Made in Angola” technology so that nationals can benefit from the “benefits of oil.”

According to the presented data, the national workforce in the oil sector represents over 87 percent of the total, and this trend continues to grow. Between 2018 and 2022, there was an increase of about 105 percent in the number of Angolans in management positions.

“Despite the introduction of innovative technology, Angolanization continues to show a growing trend due to investments in capital enhancement, although there is still a long way to go to achieve the desired level,” he emphasized.

The co-signatory companies were Sonangol-EP, Etu Energies, Atis.Nebest, Grupo Simples Oil, Cabship, Tecsep, and Sonamet.

Definition of goals

In turn, the National Director of Training and Local Content of MIREMPET, Domingos Francisco, explained that the program contract requires national companies to inform about the goals to be achieved through the selection and integration process, as well as the time the worker will take to assume the position.

“The sector requires very strict rules, and all companies are obliged to comply. Until now, program contracts were only signed with foreign companies and service providers, but with the new Decree, this action has been extended to national companies,” he said.

The process of signing contracts will continue with the remaining 1,540 registered companies and will be monitored by the Directorate of Local Content to ensure a legal and orderly replacement of the workforce, keeping the wealth within the country.

The implementation of Local Content in Angola emerged from the urgent need to give opportunities to local companies, as they were at a disadvantage compared to foreign companies in acquiring services through tenders.

As a result of the Local Content implementation, there is an expectation of internal added value, job creation, increased local production through industrialization, knowledge transfer, and local development, all aligned with the Sustainable Development Goals (SDGs) – 2030.

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