Angola/2023 – Petroleum Licensing Round

The Angolan petroleum regulator and National Concessionaire ANPG has announced that it will launch a licensing round for new acreage in the onshore basins of Lower Congo and Kwanza (the “2023 Licensing Round”). This is a summary of the 2023 Licensing Round process in a Q&A format:

When will the 2023 Licensing Round officially start? – On 30 September 2023.

How many blocks will be awarded? – A total of 12.

Where are the blocks located? – 8 blocks are located in the onshore Kwanza basin (KON1, KON3, KON7, KON10, KON13, KON14, KON15 and KON19) and 4 blocks in the onshore Lower Congo basin (CON2, CON3, CON7 and CON8). The blocks are depicted in the following map:

Where can technical/geological information about the blocks be obtained? – Information can be obtained virtually or in person by application through the ANPG website www.anpg.co.ao.

Will international companies be able to bid? – Yes, the licensing round is open to both Angolan and foreign companies.

Bids must be submitted by what date? – 4 November 2023.

When will the Terms of Reference be known? – On 30 September 2023.

What type of contract will be used? – Not announced yet, but likely Production Sharing Contract.

What information must the bid include? – All bidders (operator and non-operator) must provide the following minimum information:

1. Name, place of incorporation/registration and head office address;
2. Main business activity;
3. Balance sheet summary, including assets, liabilities, depreciation and owners’ equity;
4. Audited financial statements for the last 3 years;
5. Bank comfort letter;
6. Detailed information on oil exploration and production (E&P) experience;
7. Information on production levels and reserves;
8. Total number of employees;
9. Management/Executive level E&P experience;
10. Litigation in the last 5 years;
11. Information on existing or future liabilities/obligations, work commitments, plans or other risks that may impact work programs under Angolan contract;
12. Past activity in Angola (if any).

What requirements must operators meet specifically? – Operator bids must show the following:

• Technical and operational experience/capacity in conducting petroleum operations;
• Efficient organizational structure;
• Good health, safety and environmental standards;
• Local content plan to hire and train Angolan employees.

Bids must be submitted in what language? – Portuguese. If a foreign language is used, a certified Portuguese translation must be provided.

What follows after bid submission? – After bids are received by ANPG, these steps will follow:

1. Bids are formally opened by a Tender Committee on the first business day after the submission deadline (4 November2023). The Committee is made of representatives of ANPG, Ministry of Petroleum and Ministry of Finance;
2. The Committee approves the valid bids. Incomplete/incorrect bids must be fixed within 10 days;
3. The Committee evaluates the bids within 45 days against the ToR criteria;
4. The Committee submits an evaluation report to ANPG and a recommendation for each block award;
5. ANPG approves the Committee recommendations within 10 days and submits same to Ministry of Petroleum;
6. Tender results/awards are notified to all bidders and published in the Official Gazette and/or national and international newspaper (and displayed in the ANPG website) within a maximum of 20 days after bid evaluation deadline;
7. Bidders that do not agree with the results/awards, may appeal to the Ministry of Petroleum within 5 days from notification. The Ministry makes final decision within 5 days;
8. A Negotiations Committee is formed to negotiate the respective contract (PSC) with the winning bidder(s). Negotiations must be concluded, and the contract initialed, within 65 days;
9. Within 20 days the Negotiations Committee submits a report to ANPG, the Ministry of Petroleum and the Ministry of Finance, along with the initialed contract;
10. The government approves the contract for each block and issues the respective Concession Decree;
11. The contract is signed and the process is concluded.

When will more information be available? – ANPG will announce in due course (and before 30 September 2023) presentation sessions and other initiatives to disclose additional information and promote the 2023 Licensing Round. We will provide updates as soon as additional information is available.

For any questions, please contact Rui Amendoeira at rui.amendoeira@onelegal.pt