LUANDA, Angola, June 14, 2024 -- Angola is leveraging industry-wide reform to not only attract new investments across its oil and gas industry but to unlock a wealth of opportunities for the people of Angola. Under the guidance of the Minister of Mineral Resources, Petroleum and Gas Diamantino Pedro Azevedo, the Ministry has strengthened the environment for doing business in Angola, with regulatory amendments, partnerships with IOCs and a deliberate intention to empower state-owned institutions making the market more attractive than ever.

The African Energy Chamber (AEC) – representing the voice of the African energy sector – met with Minister Azevedo in Luanda to discuss what the country has done to attract investment. Part of a working visit to the country by the AEC, the three-hour session delved into ongoing oil and gas projects; how empowering institutions such as the National Oil, Gas & Biofuels Agency (ANPG); Sonangol; and the Oil Derivatives of the Republic of Angola (IRDP) has created a competitive industry; and the critical role of local content development in the country.

In recent years, the Angolan government has implemented a series of measures to enhance the investment landscape, with regulatory reforms and supportive policies laying the foundation for billion-dollar deals in the oil and gas space. Instituted reforms include optimizing a focus on deepwater projects, offering attractive terms for onshore exploration, and incentivizing local Angolan companies. Additional measures include the establishment of the New Gas Consortium to enhance gas exploration; restructuring the national oil company Sonangol; and the introduction of downstream regulator IRDP. Concurrently, Angola is boosting oil production through a six-year licensing round spearheaded by Angola’s upstream regulator the ANPG. This initiative includes production sharing negotiations for offshore blocks and aims to revitalize exploration in the Lower Congo and Kwanza Basins.

To support companies doing business in Angola, the country has also imposed a series of travel policy amendments. In 2023, the country implemented a measure that allows citizens from 90 countries to travel to Angola visa-free. The policy supports travel and commerce to Angola, making the country that much more attractive to foreign companies. Additionally, the country implemented a one-stop-shop for local content compliance in the oil and gas industry, enhancing transparency and policy implementation across the sector. In tandem with an amended Local Content Policy – which provides greater clarity on local content requirements and creates new avenues for local service providers – the one-stop-shop creates revenue-generating opportunities for the country.  

Recent project developments in Angola reflect the positive impact of these reforms, with various IOCs making significant progress in developing large-scale oil and gas projects. TotalEnergies, for example, is driving a multi-energy strategy in Angola, which includes investments in deepwater exploration and the development of the $850 million Begonia field. The company made FID on the $6 billion Kaminho development last month, the largest deepwater development in the Kwanza basin. The development comprises the Cameia and Golfinho fields and will come online by late-2025. Additionally, the Agogo Integrated West Hub Development – operated by international energy company Azule Energy and located in Block 15/06 – is expected to produce 120,000 barrels per day (bpd). Production is set to commence in 2026 and the project forms part of a broader effort to increase national oil output and utilize existing infrastructure efficiently.

ExxonMobil is also making progress with exploration endeavors. The company has plans to invest up to $15 billion in developing hydrocarbons in the company, following the success and outcome of ongoing exploration projects. ExxonMobil recently completed drilling operations at the Likember-01 research well in Block 15 offshore Angola between February and April 2024. The drilling in the Kizomba B development area uncovered high-quality hydrocarbon-bearing sand packages, which indicate significant potential for further exploration and production. This discovery underscores the ongoing success of Angola’s efforts to attract major international oil companies and highlights the country’s rich hydrocarbon resources.

On the gas front, the Angola LNG Project – a partnership between Sonangol and energy majors Chevron, TotalEnergies and Azule Energy – aims to boost the country’s LNG production capacity. With a capacity of 5.2 million tons per year, the project has been producing and exporting LNG for several years, positioning the country as a gas-driven economy. Additionally, a new terminal and logistics hub in Soyo will produce 65,000 bpd and store 2 million barrels. This Public-Private Partnership project offers importation exemptions and a ten-year tax break, with operations set to begin in 2026 and a license duration of 15 to 25 years.

“Angola continues to attract investment through various initiatives and the results are already showing in the oil and gas industry. By offering new exploration blocks, enhancing local content policies to boost domestic industry participation and improving infrastructure to support project logistics, the country is creating a robust and sustainable energy sector that contributes to Angola’s economic growth,” states NJ Ayuk Executive Chairman of the AEC. “The government continues to address challenges to doing business by promoting travel and commerce, tackling above-ground risks such as visas, and engaging with Angolan companies. This will catalyze growth in the country and the AEC fully supports Minister Azevedo and the country.”