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ANGOLA AFRICAN HUB COUNTRIES The Angola LNG Project is being executed by Sonangol, Chevron,


Total, BP and ENI groups (‘Promoter Companies’) through their invest- ment in Angola LNG Limited (Angola LNG) – the holder of the corre- sponding rights in the project and the entity that will receive the revenue generated by the sale of LNG. The project also involves an operator for the onshore and offshore facilities and another for the gas pipelines net-


work, both having entered into operation agreements with Angola LNG and also being held by the Promoter Companies.


“ The Angola LNG Project was initially designed as an integrated value


chain along which LNG would be transported from the liquefaction plant in Soyo, Angola, to the regasification facilities in Pascagoula, United States of America and after undergoing regasification, the gas would be sold to an affiliate of the Promoter Companies.


However, recent developments in the world markets have made LNG


sales profitable in markets other than those for which the project was de- signed. As a result, in 2012, Angola LNG started planning the adjustment of its marketing strategy in order to allow LNG shipments to be redirected to other markets with potentially higher value. This redirection may open the possibility for Angola LNG to: (i) process the domestic share of gas Sonangol is entitled to (and which is not used for internal consumption);


as well as (ii) acquire additional domestic gas and LNG for internal use in Angola.


Angola is planning a second bid for pre-salt to take place this year, this time for onshore blocks


Special Foreign Exchange Regime Until 2012 companies operating in the oil and gas sector were subject to the foreign exchange rules set out in their respective concession agree- ments, however, with the enactment of the Angolan Oil and Gas Foreign Exchange Act (Act 2/2012, of January 13) the Government decided to change this situation and establish a general foreign-exchange regime ap- plicable to oil and gas activities pursued under the Angolan Petroleum Act.


The new regime is intended to strengthen the country’s banking sector


and requires that Sonangol and its Associates (domestic or foreign corpo- rate persons associated with the National Concessionaire through a com- mercial company, a consortium agreement or a production sharing agreement) make all payments of expenses and tax obligations, as well as payments for goods and services provided by residents and non-residents, through bank accounts domiciled in Angola. The Angolan National Bank (Banco Nacional de Angola – ‘BNA’), entrusted with the implementation of these rules issued Notice 20/2012, of April 12, setting out the following milestones and requirements:


(i) as from October 1 2012, the National Concessionaire and its Asso-


ciates are obliged to make the payments for the supply of goods and serv- ices through accounts opened with Angolan banks in both Kwanzas and foreign currency;


(ii) as from May 13 2013, the National Concessionaire and its Associ-


ates must also deposit in specific accounts with Angolan banks, the amounts resulting from the sale to BNA of the foreign currency required for payment of taxes and other fiscal obligations to the State;


(iii) as from July 1 2013, contracts for the supply of goods and services


concluded by the National Concessionaire and its Associates with forex resident entities must be paid in Kwanzas (such payments are necessarily made through the accounts opened in Angolan banks, as per (i) above);


(iv) as from October 1 2013, payments for supplies of goods


and services to forex non-resident entities must be made through the operator’s accounts with Angolan banks.


However, the Angolan Oil and Gas Foreign Exchange Act


does not define forex “resident” and “non-resident” and such con- cepts are found in Article 4 the Angolan General Foreign Ex- change Act (Act 5/97, of June 27), which applies on a subsidiary basis, and according to which a forex “resident” in Angola in- cludes not only companies with registered headquarters in the country but also the local subsidiaries, branches, agencies and other forms of representations of foreign companies in Angola.


Hence, for the purposes of the referred General Foreign-Ex-


change Act, companies with a registered head office abroad are considered forex non-residents, but their subsidiaries, branches, agencies and other forms of representations in Angola are con- sidered forex residents. Consequently, as of July 1 2013, all pay- ments made to such suppliers that are forex resident must be made through accounts with Angolan banks and in Kwanzas.


Also as a result of these rules, as from October 1 2012, the


National Concessionaire and its Associates are obliged to hold accounts in Angolan banks in both Kwanzas and in foreign cur- rency. In what concerns the foreign-currency accounts, after the sale to the BNA of the foreign currency required for payment of taxes and other fiscal obligations to the State, the balance of such accounts will be primarily used for the payment of current ex- penses (cash call) to forex non-resident suppliers and only then will the surplus balance be allowed to be placed by the foreign


ENERGY & INFRASTRUCTURE | SUB SAHARAN AFRICA 2013 49


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