Angola is a significant player in Africa’s oil and gas industry, holding abundant untapped resources.
The country boasts approximately 9 billion barrels of proven crude oil reserves and around 11 trillion cubic feet of proven natural gas reserves.
Angola produces about 1.16 million barrels of oil per day, with a peak production of 2 million barrels per day in prosperous years.
The oil industry in Angola is primarily dominated by the upstream sector, focusing on the exploration and production of offshore crude oil and natural gas.
Nearly 75% of the current oil production comes from offshore fields. The state oil company, Sonangol, plays a crucial role in the sector.
However, recent reforms have led to the creation of the National Agency for Petroleum, Gas and Biofuels (ANPG) to regulate upstream operations and award concessions.
The petroleum industry is a key driver of Angola’s economy, accounting for almost 75% of the country’s revenues and contributing significantly to its GDP. Despite being a leading producer, Angola imports 80% of its demand for refined petroleum products due to underdeveloped refining capacity.
The government plans to construct national refineries to reduce this dependency.
The government has introduced legal reforms and restructured Sonangol to make the sector more attractive to investments. A six-year licensing round from 2019 to 2025 aims to auction and license 50 new blocks for exploration and production.
New fiscal incentives have been introduced to spur investments, including the Private Investment Law 10/21 and the Competition Law 5/18.
Angola has faced a decline in oil production over the past decade. Efforts are underway to reverse this trend and boost production. There is also a push to diversify the economy and reduce reliance on oil revenues. The COVID-19 pandemic and international price wars have impacted global demand and oil prices, posing challenges to the sector.
In summary, Angola’s oil and gas sector remains a vital component of its economy, with ongoing efforts to attract investments, improve infrastructure, and enhance production capabilities. The country’s rich resources and strategic reforms present significant opportunities for growth and development in the industry.
Source : Joycelyn Marigold – African Property Magazine
