Mon. Apr 29th, 2024

Angola’s rich history of oil production – dating back to its first commercial discovery in 1955 – has been a cornerstone of the nation’s economic development, with the sector accounting for 75% of the government’s revenue.

Now, Angola represents one of the continent’s largest producers and is set to maintain production at 1.1 million barrels per day (bpd) beyond 2027.

Leveraging this deep-rooted experience, Angola is actively attracting new investments, not only to sustain oil production but to accelerate the development of new projects. The Angola Oil & Gas (AOG) conference – scheduled for October 2-4 – will not only showcase the country’s production milestones but connect projects and profitable opportunities to financiers.

AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; national oil company Sonangol; the National Oil, Gas and Biofuels Agency; the African Energy Chamber; and the Petroleum Derivatives Regulatory Institute, the event is a platform to sign deals and advance Angola’s oil and gas industry. To sponsor or participate as a delegate, please contact [email protected].

A History of Success Entices New Players
Angola’s sustained upstream success continues to attract new entrants to the market, facilitated by the country’s six-year licensing round – launched in 2019. Currently, Angola’s National Oil, Gas & Biofuels Agency is negotiating production sharing agreements with the winners of the 2023 bid round, announced in January 2024. The 12-block tender featured 53 bids, demonstrating the scale of interest in Angolan exploration.

Among the winners were ACE Energy, Etu Energias, Transoceanic, Intank Group, Grupo Simples Oil, Acrep S.A, Walcot Limited, and Serinus Energy, as operators. Selected non-operators included Effimax Energy, Enagol, Sonangol and Afentra, all seeking to inject fresh investments into the Lower Congo and Kwanza basins. The success of this multi-year licensing round – offering 55 blocks for exploration through 2025 – underscores the government’s commitment to driving exploration in Angola.

IOC Commitments Drive Long-Term Investments
Much of Angola’s upstream success can be attributed to projects led by Sonangol in collaboration with IOCs. Currently, energy major TotalEnergies dominates the market with a 41% share while majors Chevron and ExxonMobil hold a 26% and 19% share, respectively. This year, TotalEnergies is celebrating 100 years of global operations and 71 years of activity in Angola. The company is undertaking a multi-year strategy, comprising projects such as the $850 million Begonia Oilfield Development; Quiluma and Maboqueiro – Angola’s first non-associated gas project -; alongside renewable energy projects. In 2024, the company expects FID for the Cameia-Golfinho fields and production to start at the CLOV Phase 3 project in Block 17.

Meanwhile, ExxonMobil is extending its 20-year tenure in the country with a $15 billion investment in the Namibe basin. The company is active in Blocks 15, 17 and 32, and in 2022, announced a discovery at the Bavuca South-1 well in Block 15, marking the eighteenth in the block and the first in nearly 20 years. Additionally, international energy company Azule Energy – which boasts exploration and production rights across 20 licensed blocks in the country – represents the country’s largest equity producer of oil and gas, holding two billion barrels equivalent of net resources. In late 2023, the company signed Risk Service Contracts for offshore Blocks 46, 47 and 18/15.

In the oilfield services industry, companies such as Petromar continue to leverage their history in the market to deliver essential construction, fabrication, and related services for projects. This year, Petromar is celebrating 40 years of operations in Angola.

As Angola intensifies its exploration and development endeavors, the country’s rich oil production heritage will continue to underpin partnerships with global players, enticing foreign investment and accelerating economic growth through oil and gas. The theme of AOG 2024 – Driving Exploration and Development Towards Increased Production in Angola – aligns closely with this trend, with the conference connecting new players to promising opportunity in Angola.

By Joy

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