Exxon Gets Better Fiscal Terms for Angola’s New Deepwater Blocks - Africa’s premier report on the oil, gas and energy landscape.

Exxon Gets Better Fiscal Terms for Angola’s New Deepwater Blocks

Angola’s National Agency for Petroleum, Gas and Biofuels (ANPG) has announced an improvement of the fiscal terms of Blocks 30, 44 and 45 in the Namibe Basin, “within the scope of the Contracts for Services with Risk (CSR) and Extension of the Initial Phases of Exploration for the referred Blocks”,

These improved fiscal terms are expressed in a Memorandum of Understanding jointly signed in Luanda by the country’s General Tax Authority (AGT), ExxonMobil and (the state hydrocarbon firm) Sonangol.

In the context of the agreement, ANPG expects some $15Billion to be invested “in case of commercial success, with the State expected to raise between $20Billion and $40Billion for conservative oil prices of between 50 and 60 dollars a barrel”.

At the signing ceremony March 14, 2023, Paulino Jerónimo, Chairman of the Board of Directors of ANPG, emphasized the benefits in mitigating the decline in production, replacing reserves and creating jobs: “The Memorandum of Understanding, which is the result of the negotiated terms, provides considerable benefits for all parties involved. I highlight the estimated investments of $200Million dollars for studies and the drilling of the research well, until 2024. And the estimated revenue for the Angolan State from the development of a single large commercial discovery, which can vary from $20 Billion to $40Billion, if we consider a conservative analysis price between 50 and 60 Dollars/barrel”

Melissa Bond, Exxon Mobil’s General Manager in Angola, said the MoU reinforces the company’s commitment to the exploration sector in the country, namely in southern zone of Namibe, as the exploration of Blocks 30, 44 and 45 in the Namibe Basin opens a new door for the consolidation of the operator’s activity in the country”.

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