Clifford Chance

Foreign exchange regulations for the Angolan oil and gas sector

7 June 2012

The oil and gas sector is currently Angola's most important source of income and foreign currency. Companies, national and foreign, investing and operating in the oil and gas sector are not subject to the generally applicable foreign exchange regulations. Instead, they used to be subject to specific rules that follow from the concessions under which these companies are operating. This resulted in a variety of rules and procedures that basically apply to the same type of foreign exchange transactions.

The Angolan legislator has decided to change this situation and to introduce a foreign exchange regime that applies generally to companies investing and operating in the oil and gas sector. The new rules are also intended to ensure that a larger part of the income generated by the sector is kept within the country through local banks, thereby strengthening the liquidity of local banks and the national economy.

On 29 November 2011, the Angolan Parliament adopted the Law on the foreign exchange regime applicable to the oil and gas sector. This Law provides that the Angolan National Bank (Banco Nacional de Angola; the "BNA") must adopt the procedures and mechanisms that are required for the implementation of the Law and has to define an implementation calendar.

This memorandum describes some important aspects of the Law. It is important to note that the general Angolan foreign exchange regime applies to all matters that are not specifically addressed in the Law.

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