Notice No. 07/2022 of March 15 on Exchange Rate Policy: Specific Rules for Insurance and Reinsurance Payments to Oil and Gas Operators

PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 46, OF MARCH 15, 2022 NOTICE NO. 07/2022 SUBJECT: EXCHANGE RATE POLICY

• Specific Rules Applicable to Payments for Insurance and Reinsurance Provided to Oil and Gas Sector Operators
  Whereas it is necessary to update the scope of application of this Notice and considering it appropriate to expand the eligible credit modalities; Considering the provisions in force of the current exchange rate legislation and Law No. 02/12, dated January 13, which approves the Exchange Rate Regime Applicable to the Oil Sector, there is a need to simplify the financial intermediation process regarding payments under insurance and reinsurance contracts involving oil operators, with a view to balancing the interests of the State, domestic and foreign investors, and Banking Financial Institutions domiciled in the Country; In accordance with the combined provisions of paragraph 2 of Article 28 of Law No. 05/97, dated June 27 – Exchange Rate Law, and Article 40 of Law No. 24/21, dated October 18 – Law of the National Bank of Angola. IT IS HEREBY DETERMINED:
  Article 1. (Object) This Notice establishes the specific rules applicable to payments under insurance and reinsurance contracts involving oil and gas sector operators in the Republic of Angola.

CONTINUATION OF NOTICE NO. 07/2022 Page 2 of 3
Article 2. (Scope) This Notice applies to the parties involved in contracting insurance and reinsurance, namely:
a) Commercial banks; b) Oil and gas sector operators; c) Insurance and reinsurance companies.

Article 3. (Transaction Settlement Currency)

1. Transactions between insurance and reinsurance companies and oil and gas sector operators regarding the contracting of upstream and midstream energy insurance, including premium refund reimbursements and claim payments related to oil and gas exploration and production activities, shall be preferentially settled in the national currency, but may be in foreign currency if there is an agreement between the parties.
2. Notwithstanding the preceding paragraph of this article, non-energy upstream and midstream insurance contracts related to oil and gas exploration and production activities shall be exclusively settled in the national currency.
3. Transactions abroad for payments to non-resident foreign exchange reinsurance companies shall be settled using funds existing in accounts domiciled at Commercial Banks located in the country, held by insurance companies.

Article 4. (Sanctions) Failure to comply with the provisions of this Notice constitutes an infraction provided for and punishable under Law No. 5/97, dated June 27 – Exchange Rate Law, and Law No. 14/2021,

CONTINUATION OF NOTICE NO. 07/2022 Page 3 of 3 dated May 19 – General Regime Law for Financial Institutions, and other applicable legislation.

Article 5. (Doubts and Omissions) Doubts and omissions arising from the interpretation and application of this Notice shall be resolved by the National Bank of Angola.

Article 6. (Entry into Force) This Notice enters into force on the date of its publication.
PUBLISH.
Luanda, March 04, 2022.
THE GOVERNOR
JOSÉ DE LIMA MASSANO