Angola – Revision of Local Content rules for the Petroleum Industry

Presidential Decree No. 271/2020, of 20 October 2020, revises the new legal framework for the promotion and development of Local Content in the Angolan petroleum sector (New Local Content Regime).

This regime applies to (a) associates of the National Concessionaire, entities holding a service contract with risk, as well as all entities that collaborate with them in the execution of oil operations; and (b)  Angolan Companies and Commercial Companies under Angolan Law, that provide service and supply goods to the Oil Sector.

The general main principles of the New Legal Regime of Local Content are as follows:

• Preservation of national interest;
• Integration of Angolan business in the oil sector;
• Promotion of free competition;
• Hiring of the Angolan labor force;
• Promotion of technological development in Angola;
• Promotion of the Angolan Companies and Commercial Companies under Angolan Law.

The abovementioned entities must hire Angolan national workers, to guarantee the necessary professional training and the provision of salary and social conditions compatible with their qualification, being prohibited any kind of discrimination.

Additionally, these entities are obliged to hire national goods and services provided by Angolan Companies or Commercial Companies under Angolan Law and for this purpose, a list of goods and services subject to the exclusivity regime, previously defined by the National Concessionaire, shall be approved by the National Competition Regulatory Authority.

This statute redefines the concept of national or Angolan company, considering that these are as follows:

1. “Angolan Companies” – a single or multi-person company, legally incorporated, with headquarters in the national territory, in which all the share capital is held by Angolan citizens or companies;
2. “Commercial Companies under Angolan Law” – any company incorporated and established in accordance with Angolan legislation (e.g. Commercial Companies Law).