Angola has revised the exchange rules applicable to Prospecting, Research, Evaluation, Development, Production and Sale of Non-Associated Natural Gas and its derivatives, according to official legal database Legis-PALOP+TL.
The new legislation already in force, stipulates that transactions “must preferably be carried out in national currency” in the sale of Non-Associated Natural Gas, its derivatives, such as condensates and liquids of Non-Associated Natural Gas and Liquefied Natural Gas and the Provision of Associated Services, between the Investing Companies.
Such transactions may, however, be made in foreign currency, provided that there is an understanding between the parties for the transaction in foreign currency, and that the buyer is an Exporting Entity, that is, an Investment Company involved in the sale of Non-Associated Natural Gas and/or its derivatives, which exports them, in whole or in part.
Legal Update/ Angola: Oil and Gas sector payments under insurance and reinsurance contracts
Settlement of sales of Non-Associated Natural Gas and its derivatives, as well as the Provision of Associated Services, can be carried out in bank accounts maintained in Commercial Banks outside Angola, even if between Investing Companies, provided that they ensure the maintenance of funds in bank accounts with Commercial Banks domiciled in Angola, to cover associated tax liabilities and other mandatory liabilities in Angola.
The opening and maintenance of bank accounts, as well as the contracting of financing with Financial Institutions abroad, on behalf of Investment Companies, do not require authorization from the National Bank of Angola.
Investment Companies are commercial companies, national or foreign, that enter into a contract with the National Concessionaire in any of the forms provided for in the Petroleum Activities Law and/or that are dedicated to the sale of Non-Associated Natural Gas and/or its derivatives.
Legal Update/ Angola: Currency outflow limits to resident and non-resident individuals
The new legislation is aimed at Investment Companies involved in the research, development, production and/or sale of Non-Associated Natural Gas, and Banking Financial Institutions (Commercial Banks).
These entities face fines that can amount to 21,120,000 Kwanzas (about USD 45,000) for non-compliance.
Non-associated gas reserves are developed primarily to produce natural gas. There may or may not be condensate production together with the gas. Under these conditions, it is essential that there be a profitable market to which to deliver the gas.
Other articles
