Investors urged to respond to opportunities in Angola’s O&G sector

Legislative reforms aim to attract investors

ANGOLA: With a target to maintain crude output above one million barrels per day (bpd) beyond 2027, Angola used the Angola Oil and Gas Conference at the beginning of the month to call on investors to seize opportunities created by recent regulatory reforms to drive projects forward.

To support efforts to maintain production above one million barrels beyond 2027, Angola has been promoting investment in the upstream sector, which is projected to grow by 15% between 2022 and 2027.

“The liberation of the sector has opened the space for more operators. The government calls on investors to look at these business opportunities.”

“The government has been working tirelessly to establish a regulatory environment that is competitive, with fiscal regimes and policies applicable to the market. We have transformed the market in a way that allows each entity to prioritise oversight and regulation. The liberation of the sector has opened the space for more operators. The government calls on investors to look at these business opportunities,” said Angolan President João Lourenço who officially opened the two-day conference.

Echoing sentiments that caught the world’s attention in July in a speech by Donald Trump, Diamantino Azevedo, Minister of Mineral Resources, Petroleum and Gas of Angola shared insight into the measures the country is implementing to address production declines.

“I would like to reiterate: drill baby drill,” he said. “The Angolan government has been promoting reforms to improve the legal instruments to create more competitive conditions for investment. In this instance, the traditional companies in our market have been expanding their interests in exploration and the development of oilfields.”

“We have drafted a new strategy for working towards seeking natural resources. The geological surveying is a continuous process. As long as there is a possibility of us discovering natural resources, we have to continue working.”

The fireside chat directly addressed the methods of navigating Angola’s regulatory landscape, how companies can leverage innovative financing mechanisms and strategies for enhancing competitiveness in Angolan oil and gas.

“We have introduced new methodologies like the permanent offer of blocks and now we have approved a new procedure, and all this has brought new opportunities for investors. The extraction sector will always be the engine of diversification in our country’s economy,” the Minister concluded

Boosting production

Some of Angola’s biggest operators are already responding to the call to boost production. French energy major TotalEnergies, for example, has plans to increase production across its FPSOs in Angola. With six in operation and a seventh planned as part of the Kaminho deepwater development – which achieved $6 billion FID in 2024.

In an on-stage interview with Verner Ayukegba, Senior Vice President of the African Energy Chamber, Deffontaines discussed the company’s Kaminho Deepwater Development, which secured a $6-billion FID in May this year.

The project represents the first very large deepwater development in the Kwanza Basin and aims to develop the Cameia and Golfinho fields, with a production plateau of 70,000 barrels per day and target start-up of 2028.

According to Deffontaines, the Kaminho project employs an “ultra-modern design” with an all-electric FPSO – designed to minimize greenhouse gas emissions and eliminate routine flaring, with all associated gas to be fully reinjected into the reservoirs – and aligns with TotalEnergies’ commitment to sustainability and low-carbon energy production.

Azule Energy – a joint venture between Eni and bp – also aims to increase production to 250,000 bpd in the short-term. With stakes in various oil assets, the New Gas Consortium and low-carbon projects, the company leverages the expertise of Eni and bp to drive projects forwards.

ExxonMobil addressed frontier exploration drilling in Angola’s Namibe Basin and its successful redevelopment program in offshore Block 15 during an on-stage interview with Katrina Fisher, Managing Director of ExxonMobil Angola.

According to Fisher, ExxonMobil’s production has increased by 30% and the company has produced 2.6 billion cumulative barrels from Block 15 alone.

An agreement to codevelop offshore Block 14 was signed by Angola and the Democratic Republic of Congo at the opening ceremony.

Straddling the maritime border between Angola and the DRC, Block 14 boasts a production capacity of 3.29 million barrels per year. The deepwater block is operated by Chevron local subsidiary the Cabinda Gulf Oil Company, alongside partners Eni, etu energias and Angolan national oil company Sonangol.

There is also a focus on revitalising mature assets. Earlier this year, Afentra completed the acquisition of 12% and 16% non-operating interests in offshore Blocks 3/05 and 3/05A, respectively, from Azule Energy.

"We anticipate more large companies divesting in the future, with independents stepping in to acquire mature fields. We aim to continue working alongside Angolan companies, combining efforts to secure additional assets. The challenge lies in convincing investors to finance these projects.”

“We see great opportunities to acquire mature assets in Angola, reduce emissions from those assets and further develop them,” said Paul McDade, CEO of Afentra, adding, "We anticipate more large companies divesting in the future, with independents stepping in to acquire mature fields. We aim to continue working alongside Angolan companies, combining efforts to secure additional assets. The challenge lies in convincing investors to finance these projects.”

“Having the big players sell to independents is the future. It doesn’t make sense for TotalEnergies or Chevron to hold onto mature fields with declining production, so it’s a natural cycle to sell them to independent players, and Trafigura provides them with financial protection,” added Matthieu Milandri, Head of Upstream Finance at Trafigura, who worked closely with Afentra on the acquisition.

Infrastructure development

Acknowledging that up to 60% of Africa’s energy mix will still be fossil fuel driven by 2040, Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association highlighted the need to invest more heavily in downstream infrastructure.

Kragha offered three recommendations to expand downstream infrastructure, strengthen regional trade and bolster energy security.

“The first is coordinated, harmonised, regional regulations – it is critical to do this. If you don’t have harmonised regulations, you won’t have harmonised markets. Secondly, you need market-based pricing and products. Lastly, you must focus on infrastructure to minimise supply chain risks. We use trucks but we should be using rails, optimising ports and such,” he said.

Sonangol has committed to expanding downstream infrastructure as a top priority. The company is prioritising investments in refining, distribution and port infrastructure to strengthen regional trade.

Three new refining projects are currently under construction, namely the 60,000 barrel per day (BPD) Cabinda project – starting operations this year -; the 100,000 BPD Soyo Refinery and the 200,000 BPD Lobito Refinery. Other projects include the Barra do Dande Ocean Terminal.

According to Mauro Graça, CEO, Sonangol Distribution and Marketing, “This will not only allow us to be self-sufficient in storage capacity but allow us to fulfil our strategic reserves. With that project, we are not only thinking about Angola, but of the region. We are investing in 24,000 cubic metres in additional storage capacity. We also have a project to make a sea-line, so that larger ships can go to Cabinda to conduct operations.”

Angola’s focus on strengthening its port logistics will be instrumental in driving exports – both regionally and internationally. Sara Silva, Legal Compliance Manager at FAMAR, noted that maritime transport is imperative for global trade.

“It is proving to be the most cost-effective manner of transportation, allowing you to transport large volumes of cargo and reducing the cost per unit that you transport. It has the opportunity to connect markets, connecting Africa to the world,” she said.