The COVID-19 pandemic is significantly jeopardizing the intention of Angola’s National Oil and Gas Agency (ANPG) to auction nine new oil blocks concessions, a study by an Angolan consulting company specializing in oil and gas, PetroAngola, revealed on Sunday.
According to PetroAngola, the spread of the virus has brought a huge environment of uncertainty in the global oil and gas industry, negatively impacting the main fundamentals of the market.
The scenario has forced the cancellation of more than 64 percent of the country’s planned bidding in 2020 worldwide, the company said.
It added that to reverse the situation, the ANPG should equip itself with digital platforms and software to guarantee the minimum conditions for the bidding round it has planned.
The study noted that regulation needs to be transparent, clear and simple and that the bidding criteria, as well as the licensing processes, need to be made known by all interested parties.
The study also suggested that transparency will potentially help attract more competitive companies, adding that all-important information for investors and the public should be published and easily accessed.
To make bidding more competitive and increase investors’ interest, PetroAngola advised a review and readjustment in the terms of reference linked to the payment of signature bonuses, geological data acquisition, social contributions and others.