By way of Resolution 8/2017, of August 3rd, 2017, the Cape Verde government launched an ambitious program for privatisations, concessions and public-private partnerships, which includes the electricity sector.

In this context, Decree-Law 52/2021, of July 21st, 2021, set in motion the privatization of the electricity state-owned company ELECTRA, S.A.. This will involve the split of ELECTRA S.A. into two companies, one for generation and the other for distribution of electricity, and the subsequent sale to a strategic partner, employees, immigrants and small investors. The two companies to be privatized (designated as “Empresa de Produção de Electricidade de Cabo Verde – EPEC S.A” and “Empresa de Distribuição de Eletricidade de Cabo Verde – EDEC S.A.,”) will be responsible for thermal power generation and distribution, respectively.

The process of splitting ELECTRA S.A. is set out in Decree-Law 34/2022, of July 27th, 2022, and will follow general commercial law. This is an opportunity for national and international electricity players to take the role of strategic operator of these companies.

Law 18/2022, of August 25th, 2022, regulates the application in Portugal of the 2021 mobility agreement between the Community of Portuguese Language Countries (CPLP). Under the new law, CPLP nationals who wish to apply for a Portuguese visa are hereinafter exempt from presenting travel insurance and proof of “means of subsistence”.

In addition, CPLP nationals are guaranteed expedited approval of their visa applications and do not need to show up in person during the process. They are also entitled to apply for a “CPLP residence visa” which allows its holder to obtain a “residence authorization”.

Further regulations of this law were approved by the Portuguese cabinet (Council of Ministers) last September 1st. According to a Council of Ministers press release, these changes are aimed at “promoting mobility and freedom of movement with the CPLP space”.

This initiative may have been prompted by Portugal’s “self-interest” insofar that its economy needs to attract foreign labour. However, it is undoubtedly a step in the direction of facilitating movement of people within the CPLP, which civil society and businesses had been calling for a while.

After a few years of relative calm, M&A activity in the Angolan oil industry is picking up steam. In recent weeks, a number of deals have been announced involving international oil companies (IOCs), small independents and local players. One of the most significant transactions was the acquisition by Angolan independent Somoil of a 20% interest in Block 14 held by TotalEnergies jointly with Inpex. The sale was approved by the Angolan Ministry of Mineral Resources and Petroleum through Executive Decree 424/22, of September 8th, 2022. Operated by Chevron, Block 14 has mature fields which have been producing since 1999 with a present output of around 45.000 barrels per day. Somoil is the biggest and most active Angolan homegrown upstream operator with a portolio of stakes in 14 operated and non-operated blocks.
 
Meanwhile London-listed Afentra is in the process of purchasing from Croatian INA – Industrija Nafte a 4% interest in Block 3/05 and a 5.33% interest in Block 3/05A, both operated by Sonangol P&P. These transactions will build upon the earlier (April 2022) acquisition of a 20% interest in Block 3/05 from Sonangol, which will take Afentra’s combined interest in the Block to 24%. The acquisitions are still subject to Angolan regulatory approval, which Afentra expects to occur before the end of the year. Block 3/05 production is currently sitting at just under 20.000 barrels per day but has material growth potential.
 
Concurrently with Afentra’s acquisitions it is anticipated that the Block 3/05 and 3/05A licenses will be extended to 2040 by the Angolan government under improved commercial and fiscal terms to stimulate investment and boost production. These blocks represent Afentra’s first foray into Angola.
 
Finally, the Angolan petroleum regulator ANPG has just announced that Block 33/21 is available to be awarded by direct negotiation following an expression of interest submitted by the joint venture T-North Trading and Brubell Investimentos. Other interested companies are invited by ANPG to apply for this block (as operator or non-operator) until the end of September. Block 33/21 is located in offshore Lower Congo Basin.