The poor management of the sector, combined with "disincentives to investment", these arising from factors such as production costs, inadequacy of the law and an environment of lack of transparency, are identified as an "aggravating cause" of two failures, seen in the sector as potentially damaging the country's interest in “stalling” the decline of its oil industry:
- The expected interest did not materialize for an international tender with a view to bidding for nine blocks in the Namibe basin and one in the Benguela basin; only three were bidded (Sonangol, ENI and Total).
- No medium-sized international company expressed interest in onshore oil exploration in the Kwanza and Zaire basins; the pre-selected companies, some of which are under Angolan law, are mostly unknown and/or of doubtful credibility. READ MORE