- Chevron (CVX -0.1%) says it is in talks with Angola's government and state oil firm Sonangol to revise tax terms, and that any future investment will hinge on those talks.
- The comments set the stage for potentially tough tax talks, as the government needs revenue while large oil companies are trying to turn a profit in a difficult price environment.
- Angola's economy shrank 4.3% in Q3 2016 after plunging 7.8% in Q2, a sharp reversal from double-digit growth when oil prices were high; Angola is Africa's second largest crude producer, and oil production accounts for ~90% of government revenue.