Africa Oil & Gas: Angola Enacts Abandonment and Decommissioning Rules

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Image courtesy of Angola LNG

In Angola the rules and procedures have been laid out by a new Decree for the abandonment and decommissioning of oil and gas facilities. Presidential Decree No. 91/18, of April 10, 2018 was approved by the president.

According to legal experts, the Decree 91/18 is a somewhat long statute, notably due to the various annexes, including an extensive list of technical specifications.

This statute entered into force on the date of its publication and applies to all petroleum concessions.

Under Presidential Decree 91/18, abandonment and decommissioning activities are inter alia subject to the principles of restoration of the environment and landscape, and of holding Contracting Entities liable for funding abandonment and decommissioning activities.

The following are additional highlights on the matters governed by Presidential Decree 91/18:

  • Exclusion of decommissioning of downstream infrastructures;
  • Obligation of Contracting Entities to prepare a provisional and a final abandonment plan and requirements for their drafting and approval;
  • Carrying out of inspection and auditing activities by the authorities prior to, during and after abandonment and decommissioning activities;
  • Provisioning, methodology and cost estimation of abandonment funds;
    Technical specifications;
  • Forms of certificate of abandonment and decommissioning, handover of wells and facilities, and applicable liability release and indemnification; and
  • Terms and conditions of escrow account.

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