New local content rules for the oil sector

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New local content rules for the oil sector

2020-10-23

The new legal framework applicable to the Angolan oil sector was approved by Presidential Decree 271/20 of 20 October (the "Decree"). The Decree makes a substantial change to the rules on local Angolan content applicable in the sector and it naturally repeals Order 127/03 of 25 November.

The new legal framework now extends to service providers and suppliers of goods and services to the oil sector ("Providers") and not only to oil companies (i.e., associates of the National Concessionaire, holders of service contracts with risk and others that work in oil operations - "E&Ps"). Although, roughly speaking, most of the obligations relating to the contracting of goods and services fall on the E&Ps, the general framework of obligations and the provision of information also falls on the Providers. For the purposes of this framework, companies that are in the oil sector value chain and/or that perform or collaborate in the performance of oil activities are considered as Providers.

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