ANGOLAN LOCAL CONTENT REGULATIONS

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ANGOLAN LOCAL CONTENT REGULATIONS

• Presentation by
• SUSANA FERNANDES RAMOS

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ANGOLAN LOCAL CONTENT REGULATIONS

• Ministry of Petroleums Order (Despacho) No.
  127/03, of 25 November 2003
• Scope
• Establish the basic rules to be observed in the
  contracting of Angolan companies, suppliers of
  goods and services, by petroleum industry
  companies
• Objective
• providing protection, on a preliminary basis, for
  the involvement of Angolan companies and the use
  of Angolan Goods and Services in the Support
  Activities for Petroleum Operations
• Effectiveness
• Immediate
• Applicability
• Current and future concessions

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TENDERS

• Mandatory competitive tenders under 3 different
  regimes
• Direct hiring only for
• (i) urgent technical reasons and or
• (ii) if the relevant services and/or goods are
  not available on the domestic market.
• But always with prior authorization from the
  MinPet.

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TENDER REGIMES

• Services and supply of goods reserved to local
  contractors
• Exclusive Regime - This Regime governs all
  activities not requiring heavy capital investment
  and with a basic, medium or higher level of
  non-specialized know-how, where foreign companies
  may only take part as subcontractors of Angolan
  companies, i. e. those in which 51 of the share
  capital is held by Angolan nationals.

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TENDER REGIMESEXCLUSIVE REGIME
The following business opportunities are covered
by this Regime

• Pressure tests for storage tanks and oil and/or
  gas pipelines
• Transport of equipment, materials and
  foodstuffs, or drilling and production platforms
• Supply of industrial and drinking water
• Supply of technical materials
• General cleaning and gardening
• General maintenance of equipment and vehicles

• Supply post operators and managers (airports,
  ports and service stations)
• Quality inspection of products distributed and
  marketed (oil products and derivatives)
• Catering
• Retail sales of kerosene, gas and lubricants
  and
• Transport of products from terminals to supply
  posts.

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TENDER REGIMES

• Services and supply of goods reserved to local
  contractors
• Semi-Competitive Regime - This regime governs all
  areas requiring a reasonable level of capital
  investment in the petroleum industry and a higher
  level of know-how, not necessarily specialized,
  in which foreign companies are only permitted to
  be involved through joint ventures with Angolan
  companies, or on the initiative of the latter.

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TENDER REGIMESSEMI-COMPETITIVE REGIME
The following business opportunities are covered
by this Regime

• Acquisition and/or processing of geographical
  data
• Geographical or geodesic surveys
• Vertical, directional and/or horizontal drilling
  of wells
• Geological control of drilling (mud logging)
• Production tests
• Laboratories for geological, geochemical and
  fluid analysis
• Construction and assembly of mechanical and
  electrical structures, and production and
  drilling facilities
• Manufacture of plastic for the petroleum
  industry, as well as synthetic fibers and rubber

• Specialized consultancy services in engineering,
  management in geological and geophysical
  sciences, geochemistry and reservoirs, petroleum
  operations, facilities, analysis and data
  interpretation
• Operation and maintenance of production
  facilities, including oil and gas pipelines
• Calibration of storage tanks and measuring
  equipment
• Manufacture of fertilizers
• Manufacture and assembly of electric generators
  
• Production of detergents

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TENDER REGIMESSEMI-COMPETITIVE REGIME (cont.)
The following business opportunities are covered
by this Regime

• Transport of crude oil to the Refinery
• Electricity and instrumentation
• Terminal operators and managers
• Pressure tests on storage tanks and measuring
  equipment
• Maintenance engineering for terminals and supply
  posts
• Inspection of distribution and supply
  facilities
• Assembly of selected makes of vehicle for the
  oil industry
• Manufacture and assembly of ovens and lighting

• Inspection and supervision of the loading of
  petroleum or natural gas
• Transport in tankers of petroleum or natural
  gas
• Cement and conventional (drilling) mud products
  
• Supply of conventional (drilling) mud
• Supply of seismic materials, including
  explosives
• Drilling production materials and equipment
• Well cleaning and maintenance work
• Well cementing and/or completion work.

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TENDER REGIMES

• Services and supply of goods reserved to local
  contractors
• Competitive Regime The competitive regime,
  without excluding the possibility of joint
  ventures between Angolan companies and foreign
  companies, shall cover all petroleum activities,
  (offshore and onshore), not described in the
  preceding Regimes and which require heavy capital
  investment in the petroleum industry and a higher
  level of specialized know-how.

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RIGHT OF FIRST REFUSAL

• Angolan Companies Preferential Treatment
• Angolan companies benefit from a preferential
  treatment in competitive tenders for services and
  goods. The Order provides that they should be
  awarded the relevant contract whenever their bid
  is not higher than 10 above the bids submitted
  by foreign competitors.

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Thank YouSusana.Ramos_at_FatimaFreitas.com