Original Research
An analysis of compensation collected for the depletion of Angola’s oil resources
Journal of Economic and Financial Sciences | Vol 5, No 1 | a310 |
DOI: https://doi.org/10.4102/jef.v5i1.310
| © 2018 Pieter van der Zwan
| This work is licensed under CC Attribution 4.0
Submitted: 28 June 2018 | Published: 30 April 2012
Submitted: 28 June 2018 | Published: 30 April 2012
About the author(s)
Pieter van der Zwan, School for Accounting Sciences, North West University, South AfricaFull Text:
PDF (740KB)Abstract
The African continent contributes approximately 12% of the world’s oil production. Despite this wealth, many citizens of oil-rich African countries live in poverty, often because their governments do not collect sufficient compensation for the depletion of oil resources to fund national development or do not utilise compensation collected for the benefit of the people. In this article the extraction tax regime to collect compensation on Angola’s oil resources is compared to the regimes in other oil-rich countries to identify aspects from which Angola can learn with regard to the compensation systems of those countries. It is concluded that Angola may be able to improve its extraction tax regime by learning from governance measures over natural resource funds in Norway and Canada, by implementing measures to increase its oil royalty income in times of economic prosperity and by defining deductible costs more specifically in its production-sharing agreements.
Keywords
Angolan oil resources; Angolan oil taxation; oil taxation; oil royalties; production-sharing agreements (PSA)
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