Legal & Regulatory Framework

Legal Framework

Angola's petroleum sector operates under a reformed legal and regulatory framework that has been modernized to attract international investment while protecting national interests. The core legislative instruments include the Petroleum Activities Law (Lei das Actividades Petrolíferas), the Petroleum Taxation Law, the Local Content Law, and environmental and safety regulations. The ANPG administers the concession system under policy direction from MIREMPET.

The Kaminho project operates under a Production Sharing Agreement (PSA) for Block 20/11, which governs the fiscal and operational terms between the concessionaire (ANPG), the operator (TotalEnergies), and the partners (Petronas, Sonangol). The PSA framework has been refined over decades to balance investor returns with government revenue.

Fiscal Regime

Angola's petroleum fiscal regime comprises: Petroleum Production Tax (PPT) — a royalty on gross production, Petroleum Income Tax (PIT) — a tax on net income from petroleum activities, Surface Fee — an area-based fee on concession blocks, and Production Sharing — the division of "profit oil" between the state and the contractor group. The specific rates and terms vary by block, water depth, and vintage of the PSA. Deepwater blocks (like Block 20/11) typically receive more favorable fiscal terms to compensate for the higher exploration and development costs.

Environmental & Safety Regulations

Environmental regulations require operators to conduct Environmental Impact Assessments (EIAs), implement oil spill prevention and response plans, minimize gas flaring (aligned with the World Bank Zero Routine Flaring by 2030 initiative), and manage waste according to best available technology standards. The Kaminho project's all-electric, zero-flaring design exceeds regulatory requirements and represents a benchmark for future developments.

For the detailed PSA framework, licensing regime, and investment intelligence, see our dedicated pages.