NEWS

The Terms of Reference for the ongoing bidding round for the onshore Kwanza and Lower Congo blocks contemplates the payment of certain bonuses and contributions under the respective Production Sharing Contract (PSC). These are structured as follows:

• Production Bonus – A production bonus is due annually starting from the second year of production. The amount of the bonus is subject to offer/negotiation and is set in the respective PSC.
• Social Projects Contribution – A contribution for social projects is due annually starting from First Oil. This may also include environmental projects. The amount of the contribution is subject to offer/negotiation and is set in the respective PSC.

Sonangol P&P and private Angolan oil companies are exempt from these payments in accordance with Presidential Legislative Decree 3/12, of 16 March 2012. Only foreign oil companies are liable to these payments.

The bonuses and contributions are not eligible for cost-recovery under the PSC.

The bidder’s offer for bonus/contribution is one of the items to be evaluated in the bidding round with a total weight of 15% (10% for bonus, 5% for social projects contribution). These percentages are applicable to all blocks on offer. The bonus/contribution element is the second most relevant criteria for bid evaluation after the minimum work program offer.

No “signature bonus” or other bonuses are required in this bidding round.

The deadline to submit bids is 15 November 2023.

Has been prepared by OneLegal , to which MC&A is a member.

The activity of freight forwarder and logistics provider (hereinafter “freight forwarder”) is subject to a new legal regime in Angola as enacted by Presidential Legislative Decree 9/23, of 23 October 2023 (PLD 9/23). Below is an outline of the new regime:

1. Classification of Freight Forwarders: There are four types of freight forwarders as follows:

1. Class A – A company that provides the basic service of moving products from one place to another on behalf of a client;
2. Class B – A company that is internationally defined as a Third Party Logistics (3PL) provider;
3. Class C – A company that is internationally defined as a Fourth Party Logistics (4PL) provider;
4. Class D – A company that is internationally defined as a Fifth Party Logistics (3PL) provider.

2. Excluded entities: The following entities are specifically excluded from PLD 9/23:

1. Customs brokers;
2. Shipping agents;
3. Ship owners;
4. Port, airport, railway or road operators

3. License: The freight forwarder activity is subject to licensing to be issued by the regulator “Entidade Reguladora de Certificação de Carga e Logística de Angola” (Angolan Regulator for Cargo and Logistics Certification). License applications must be processed within 15 days. The license is valid for 5 years, renewable for equal periods.4. Special Purpose Entity: Freight forwarder companies must be exclusively dedicated to freight forwarding and ancillary activities.

   5. Minimum Share Capital: Freight forwarder companies must have a minimum share capital equivalent to USD 10.000,00.  In the case of 3PL and 4PL providers the minimum share capital is set at USD 30.000,00.

   6. Reporting obligations: Freight forwarders must submit their financial statements to the regulator on an annual basis. In addition, the appointment of board members must also be informed to the regulator.

   7. Insurance: Freight forwarders must have civil liability insurance as required by law.

   8. Technical Director: The staff must include a “freight forwarder technical director” with a minimum 5 years’ experience approved by the regulator.

   9. Fees: The fees that freight forwarders can charge are regulated as follows;

1. Customs clearance services provided by the freight forwarder – To be agreed between freight forwarder and client;
2. Customs clearance services provided by a third party – Maximum of 1.5% of cargo value;
3. Cargo transportation – Maximum of 3%;
4. Stevedoring services – Maximum of 2%;
5. Storage – Maximum of 2%.

10. Penalties: Penalties/fines of a minimum of Kz.308.000 (roughly USD 370) and a maximum of Kz. 3.000.000 (roughly USD 3.600) can apply in case of breach of PDL 9/23. In case of serious offences, the license may be suspended or cancelled.The following previous laws are specifically repealed:

•  Order (Portaria) 5.560, of 12 June 1946
• Decree 68/89, of 11 December 1989
• Executive Decree 9/90, of 31 March 1990
• Executive Decree 95/09, of 29 September 2009
• Joint Executive Decree 64/10, of 16 June 2010

PDL 9/23 will enter into force on 22 December 2023 (60-day grace period).

Has been prepared by OneLegal , to which MC&A is a member.

The Assembly of the Republic of Mozambique approved, through Law nº 13/2023, the new Labour Law ( hereinafter “NLL”).

The new regime revokes and substitutes the previous one (dated 2007) and introduces relevant changes.

The NLL will enter into force on February 21st, 2024.

It is important to clarify that, due to the entrance into force of the NLL on 2024, all the facts occured before that date will continue to be regulated by the previous regime (Law nº 23/2007).

As foreseen in article 3, this regime is not applicable to several types of labour contracts , namely domestic employment contracts, , maritime, mining and petroleum labour contracts.

Article 22 of the NLL considers the empoyment contract to be the one  ”…under which a person (employee) is obliged to provide his/her activity to other person (employer)under the authority and direction of this, against a remuneration”.

Please see below some of the most relevant changes introduced by the new regime:

– inclusion of several legal provisions which reflect a most favorable treatment to the employee;

– freedom for the small and medium size companies to enter into term contracts (“contratos a prazo”);

– imposition of a maximum term for the duration of the term contracts, under penalty of being converted into contracts for an indefinite period;

– the non-existence of a proper reason for the term contract implies its conversion into a contract for an indefinite period;

– right to holidays – 12 days during the first year of the contract and 30 days on the following years;

– acceptance of several principles related with teleworking;

– acceptance, as sources of the labour law, of the labour customs and practices related with each profession, activity or company, provided such customs or practices are not contrary to law or to the principles of good faith;

– acceptance as sources of the labour law of the codes of conduct established between the parties;

-possibility of suspension of the labour relationship in cases of acts of God or force majeure;

– implementation of a sanctioning regime for cases of harassement at work;

– greater clarity in the definition and regulation of the phases of the disciplinary proceedings.

MC&A is pleased to announce that, together with the Brazilian firm Schmidt Valois Advogados, has joined the OneLegal platform as a member. With this integration, MC&A strengthens its presence in the Community of Portuguese Language Countries (CPLP), including Portugal, Angola, Brasil, Mozambique, Guinea-Bissau, Timor-Leste, Cape Verde and São Tomé e Príncipe.Our participation in OneLegal will considerably enhance the firm’s capabilities to assist clients in international projects involving all Portuguese speaking countries around the world.

OneLegal was launched by the Portuguese-Angolan lawyer Rui Amendoeira, a recognized expert in the oil and gas sectors.

For more information, please visit the link www.onelegal.pt

MC&A has partnered with international law firm Simmons & Simmons in providing content for the Angolan and Mozambican sections of the Clean Energy Tool.  The Clean Energy Tool is designed as a “one -stop-shop”, user-friendly platform for comprehensive information relating to investment and developments in the clean energy sector. It already covers almost 50 jurisdictions, with more being added every month. As climate change disrupts traditional business mindsets across various sectors, the renewable energy market continues to expand rapidly, especially on the African continent, which is richly blessed with a wealth of renewable energy resources.

The Clean Energy Tool provides investors, developers and other market players with detailed legal and regulatory overviews across several areas of particular importance to renewable energy projects. These include  revenue streams, grid connections, land rights and acquisition, finance, tax, structuring and finance, and dispute resolution. An additional feature of the tool is the ability to perform cross-jurisdictional comparisons within each of these areas. To learn more about the tool, or to request a demo/free trial please visit the Clean Energy Tool.

MC&A contributions come from several collaborators spread across Africa.

Clean Energy Tool

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DECRETO-LEI N.º 126/2021, DE 30 DE DEZEMBRO REGIME DE REALIZAÇÃO DE ATOS POR VIDEOCONFERÊNCIA A 30 de dezembro de 2021 foi publicado em Diário da República o Decreto-Lei n.º 126/2021, de 30 de dezembro, que estabeleceu o regime jurídico temporário aplicável à realização, através de videoconferência, de actos autênticos, termos de autenticação de documentos particulares e reconhecimentos que requeiram a presença dos intervenientes perante conservadores de registos oficiais de registos, notários, agentes consulares portugueses, advogados ou solicitadores.

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