LUANDA Feb 22 U.S. energy company Chevron
is in talks with the Angolan government and state oil
firm Sonangol to revise tax terms and any future investment will
hinge on those talks, a senior company official was quoted as
saying on Wednesday.
"Existing tax terms are not very attractive ... We have been
working both with Sonangol and with various departments of the
government of Angola so that we can make it feasible and we can
invest. Our investment will depend on what will result from
these negotiations," Chevron Vice-president Jay Johnson was
quoted as saying on state radio.
Africa's second largest crude producer and third largest
economy has been laid low by depressed prices for oil, which
accounts for about 90 percent of government revenue.
Angola's economy contracted 4.3 percent in the third quarter
of 2016 after shrinking 7.8 percent in the second quarter, the
National Institute of Statistics said this month, a sharp
reversal from double-digit growth when oil prices were high.
The economic backdrop could set the stage for tough tax
talks as Angola's government needs revenue while large oil
companies are trying to turn a profit in a difficult price
Johnson was also quoted as saying that recent output cuts by
the Organization of the Petroleum Exporting Countries (OPEC) -
of which Angola is a member - had not affected Chevron's
production levels in the southern African country.
(Reporting by Herculano Coroado; writing by Ed Stoddard and
Jason Neely; editing by David Clarke)