Angola’s Incremental Production Initiative, launched under Presidential Decree 8/24, is creating ripples of change in the energy sector. The initiative offers an attractive legal and tax framework designed to stimulate investment in mature offshore blocks and developed offshore areas.
Incentives include significant tax cuts, such as reducing the Petroleum Production Tax from 20% to 15% and the Petroleum Income Tax from 65.75% to 55.75%. For production-sharing agreements, the Petroleum Income Tax has been halved to 25%, while the national concessionaire’s profit-oil share has also been reduced to 25%.
The results are already evident. In 2024, ExxonMobil discovered oil at the Likember-01 well in Block 15—the first success under this initiative—showcasing the potential for increased oil recovery across Angola’s most productive blocks.
