Single exchange regime for Angola’s oil sector

27 October 2011

Luanda, Angola, 27 Oct – A bill submitted to Parliament on Wednesday aims to create a single exchange regime for Angola’s oil sector, replacing the scattered laws currently in force.

The Angolan government’s proposed law on the exchange system for the oil sector considers that the essential conditions are already in place for the national financial sector to play an active role in financial intermediation of oil sector operations.

According to the document, the Angolan government’s aim is to safeguard as much as possible use of the general legal order for exchange-related matters.

Exchange operations involving the activities of prospecting, research, evaluation, development and production of crude oil and natural gas have always benefited from a special regime due to the state of development of Angola’s financial sector, which was not robust enough to handle the dynamics and volume of financial and business transactions in that sector.

Once approved by the national parliament, the proposal will enable the Angolan government to gather in a single law all the rules governing forms of payment for oil sector activities and ensure that all the sector’s monetary movements are carried out in Angola.

It will also allow licensing procedures for exchange operations to be modernised and simplified, and ensure enhanced availability of financial information associated to the annual budgets of companies operating in the sector. (macauhub)