{"id":11892,"date":"2022-02-22T04:52:02","date_gmt":"2022-02-22T04:52:02","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=11892"},"modified":"2022-02-22T04:52:02","modified_gmt":"2022-02-22T04:52:02","slug":"angolas-oil-and-gas-sector-is-ripe-for-new-investments","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/angolas-oil-and-gas-sector-is-ripe-for-new-investments\/","title":{"rendered":"Angola\u00b4s Oil and Gas Sector is Ripe for New Investments"},"content":{"rendered":"

By Verner Ayukegba, Senior Vice-President of the African Energy Chamber<\/em><\/p>\n

Angola is sub-Saharan Africa\u00b4s second-largest oil and gas producer with a current production capacity of about 1.1 million barrels of oil per day (bpd) and 17,904.5 million cubic feet of natural gas. The country\u2019s oil and gas sector accounts for about one-third of its gross domestic product (GDP) and more than 90% of total exports. Angola has 8.2 billion barrels of proven oil reserves and an estimated 13.5 trillion cubic feet (tcf) of natural gas reserves. These impressive stats in terms of upstream potential are, however, yet to be replicated in the countries midstream and downstream sectors. The government has made it a priority, not just to harness its upstream potential, but also to focus on value creation across the entire value chain, with big investments planned in Angola\u2019s mid-stream and downstream sectors.<\/p>\n

Promoting Upstream Investments<\/strong><\/p>\n

In a bid to reverse the decline in production of recent years, the government has taken a number of aggressive steps to attract and facilitate new exploration in Angola. Firstly, the government created a separate regulator or concessionaire in 2018. Dubbed the National Oil, Gas and Biofuels Agency (ANPG), this regulator has a set of specific roles: the implementation of government upstream policy under the supervision of the Ministry of Mineral Resources, Petroleum and Gas; the revaluation of Angola\u2019s reserves and hydrocarbon potential; the promotion of bid rounds and exploration activity; as well the regulation of the sector.<\/p>\n

Despite the challenges caused by the COVID-19 pandemic, the ANPG has, since 2019, organized a yearly bid to cede exploration acreage including onshore blocks, some of which have proven discoveries on them. The Agency has also announced that it will also engage in direct negotiations with interested explorers in a bid to reduce red tape and promote seismic acquisition and exploration.<\/p>\n

Natural gas is also expected to play a greater role in Angola\u2019s hydrocarbon mix going forward. To that effect, the government in 2018 laid the foundation by passing Presidential Decree No. 7\/18 to specifically regulate the exploration and production of natural gas. Contrary to the past, where gas was only considered a by-product in the quest for oil, the Angolan regulator now seeks to promote gas not just for export and use in the production of oil, but also as a key component to feeding industries such as power generation, petrochemicals and agriculture, with the ultimate goal of driving diversification. The new regulation allows for operators other than the national oil company Sonangol to explore and develop natural gas assets for both domestic and export markets in a speedy manner. The cost of the development of natural gas projects has also been made significantly attractive, by decoupling them from the regimes that apply to oil projects. Petroleum production tax and petroleum income tax have all been halved for gas projects and can even be reduced further for discoveries below two tcf.<\/p>\n

Given the importance of the sector to the entire Angolan economy, the government has also sought to gradually increase the participation of Angolans across the entire value chain, without losing its competitive edge vis-a-vis other countries. As the Angolan services sector grows in terms of technical competence, so has the opportunities for Angolan companies. In other words, local content is a priority, as the government seeks to increase local participation to ensure that the industry benefits all Angolans. However, it is driven by sensible policies aimed at keeping Angola competitive as a destination for investment.<\/p>\n

Mid- and Downstream Opportunities<\/strong><\/p>\n

Like many other major oil and gas producing countries across sub-Saharan Africa, Angola\u2019s downstream sector has not seen the same degree of capital investment compared to the upstream market.<\/p>\n

Despite Angola\u2019s abundant hydrocarbon resources, there is a disproportionate 80% of refined petroleum products being imported from abroad to meet demand in strategic sectors such as transportation. Accordingly, the government plans to address downstream inadequacies through the expansion of refining capacity via a number of key projects, offering opportunities for investment in Angola\u2019s lucrative oil and gas market.<\/p>\n

Despite delays caused by the impacts of the COVID-19 pandemic, Angolan authorities are advancing plans to construct three new refineries across three locations in the country. Namely, Soyo in northern Angola, in the exclave city of Cabinda and in the port city of Lobito. The Cabinda refinery project in Angola\u00b4s downstream sector is at an advanced stage with a capacity to process up to 60,000 bpd. These developments will address the disproportionate importation of refined products and also seek to position Angola as a major exporter of refined products and associated petrochemicals in the sub-region.<\/p>\n

Accordingly, there is an opportunity for international companies, some of which are already operating throughout Angola\u00b4s energy value chain, to work on new projects on their own or with state-owned Sonangol. This way, international companies can take advantage of the unique opportunities both in Angola and in the sub region, which includes major net importers of refined products like the Democratic Republic of Congo and Zambia. In this regard, TotalEnergies has already invested $100 million in its partnership with Sonangol to further expand the country\u00b4s fuel distribution network by building 50 new service stations.<\/p>\n

While Angola aims to complete the various refinery projects currently underway and create an attractive investment environment for new projects, the country also intends to progressively open up the downstream sector to serve as a catalyst to foster greater competition, stronger economic growth, and maximize the potential for new job creation as well as other socio-economic benefits.<\/p>\n

These and many other opportunities are expected to be in the spotlight at this year\u2019s edition of Angola Oil and Gas, scheduled to be held on 29,30 November and the 1 December 2022. Angola Oil and Gas 2022 is the official conference of the Ministry of Mineral Resources, Petroleum and Gas of Angola ministry and will bring together stakeholders from Angola\u2019s oil and gas industry, as well as global investors and services companies interested in opportunities in Angola.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Verner Ayukegba, Senior Vice-President of the African Energy Chamber Angola is sub-Saharan Africa\u00b4s second-largest oil and gas producer with a current production capacity of about 1.1 million barrels of … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":8258,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7445,11],"tags":[160,10212,375,955,10211,1827,2129,2362],"class_list":["post-11892","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-southern-africa","category-top-news","tag-angola","tag-angola-oil-and-gas","tag-cabinda","tag-gas","tag-ministry-of-mineral-resources-petroleum-and-gas","tag-oil","tag-refinery","tag-sonangol","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Angola-terrestrial-bassins.jpg?fit=2322%2C952&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-35O","jetpack-related-posts":[{"id":11315,"url":"https:\/\/www.oilnewskenya.com\/index.php\/angola-chevron-secures-renewal-of-block-0-concession-through-2050\/","url_meta":{"origin":11892,"position":0},"title":"ANGOLA: Chevron Secures Renewal of Block 0 Concession through to 2050","author":"","date":"December 7, 2021","format":false,"excerpt":"Chevron\u2019s affiliate in Angola, Cabinda Gulf Oil Company Limited (CABGOC) announced today the successful extension of the Block 0 concession, off the coast of Cabinda province, in Angola. The agreement extends the concession for 20 years, through 2050. Under the renewed agreement, CABGOC will remain the operator with a 39.2\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/ANGOLA-Block-0.png?fit=1074%2C932&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/ANGOLA-Block-0.png?fit=1074%2C932&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/ANGOLA-Block-0.png?fit=1074%2C932&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/ANGOLA-Block-0.png?fit=1074%2C932&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/ANGOLA-Block-0.png?fit=1074%2C932&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":15349,"url":"https:\/\/www.oilnewskenya.com\/index.php\/angola-eni-inaugurates-gas-treatment-plant-in-soyo\/","url_meta":{"origin":11892,"position":1},"title":"ANGOLA: Eni Inaugurates Gas Treatment Plant in Soyo","author":"","date":"November 28, 2025","format":false,"excerpt":"Eni, through its satellite company Azule Energy - a 50:50 joint venture with bp and the operator of the New Gas Consortium (NGC) \u2013 inaugurated the NGC Gas Treatment Plant in Soyo, northern Angola. The ceremony was attended by the President of the Republic of Angola, Jo\u00e3o Gon\u00e7alves Louren\u00e7o, alongside\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/11\/Angola-Soyo.jpeg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/11\/Angola-Soyo.jpeg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/11\/Angola-Soyo.jpeg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/11\/Angola-Soyo.jpeg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/11\/Angola-Soyo.jpeg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":10191,"url":"https:\/\/www.oilnewskenya.com\/index.php\/new-discoveries-in-angolas-prolific-basins-fuel-interest-in-ongoing-bid-round\/","url_meta":{"origin":11892,"position":2},"title":"New Discoveries in Angola\u2019s Prolific Basins Fuel Interest in Ongoing Bid Round","author":"","date":"April 9, 2021","format":false,"excerpt":"ENI announced on Tuesday 06 April, that it had made a new discovery in Angola. The Italian Major\u2019s latest oil discovery in its Block 15\/06 concession offshore Angola underlines why Angola\u2019s Prolific Basins and conducive regulatory framework continue to prove attractive despite stiff competition from new frontiers like Guyana and\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/04\/Seadrill-West-Auriga-e1612999724586-780x470-1.jpg?fit=780%2C470&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/04\/Seadrill-West-Auriga-e1612999724586-780x470-1.jpg?fit=780%2C470&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/04\/Seadrill-West-Auriga-e1612999724586-780x470-1.jpg?fit=780%2C470&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/04\/Seadrill-West-Auriga-e1612999724586-780x470-1.jpg?fit=780%2C470&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":9461,"url":"https:\/\/www.oilnewskenya.com\/index.php\/oil-and-gas-discoveries-and-activity-in-southwest-africa-set-to-open-new-basins-for-development-and-trigger-big-investments-in-namibia-angola-and-south-africa\/","url_meta":{"origin":11892,"position":3},"title":"Oil and Gas Discoveries and Activity in Southwest Africa Set to Open New Basins for Development and Trigger Big Investments in Namibia, Angola and South Africa","author":"","date":"November 23, 2020","format":false,"excerpt":"By NJ Ayuk, Executive Chairman, African Energy Chamber Last spring, the Maersk\u00a0Voyager,\u00a0an ultra-deepwater drillship under contract by French supermajor Total, drilled a wildcat well in the deepest water ever - 3,628 meters (11,903 feet) in Block 48, a massive area with potentially huge oil reserves in the Congo basin offshore\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Maersk-Developer.jpg?fit=750%2C499&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Maersk-Developer.jpg?fit=750%2C499&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Maersk-Developer.jpg?fit=750%2C499&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Maersk-Developer.jpg?fit=750%2C499&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":14811,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-energy-bank-gains-momentum-with-capital-contributions-from-nigeria-angola-and-ghana\/","url_meta":{"origin":11892,"position":4},"title":"Africa Energy Bank Gains Momentum with Capital Contributions from Nigeria, Angola and Ghana","author":"","date":"April 2, 2025","format":false,"excerpt":"\u00a0In a significant development for Africa's energy sector, Nigeria, Angola and Ghana have fulfilled their capital commitments toward establishing the Africa Energy Bank (AEB). This milestone represents 44% of the minimum required funding from African Petroleum Producers Organization (APPO) members to initiate the bank's operations. Dr. Omar Farouk Ibrahim, Secretary\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/01\/ReconAfrica-Rig.jpg?fit=403%2C518&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":10639,"url":"https:\/\/www.oilnewskenya.com\/index.php\/angolas-onshore-bid-round-attracts-global-interest-with-multiple-bids\/","url_meta":{"origin":11892,"position":5},"title":"Angola\u2019s Onshore Bid Round Attracts Global Interest with Multiple Bids","author":"","date":"July 27, 2021","format":false,"excerpt":"Angola\u2019s oil and gas regulator, the National Oil, Gas and Biofuel's Agency (ANPG) achieved an important milestone earlier this week, when it opened bids for its 2020 onshore licensing round. All of the nine oil and gas onshore blocks in the Lower Congo and Kwanza basins received bids from a\u2026","rel":"","context":"In "Central Africa"","block_context":{"text":"Central Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/central-africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Angola-terrestrial-bassins.jpg?fit=1200%2C492&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Angola-terrestrial-bassins.jpg?fit=1200%2C492&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Angola-terrestrial-bassins.jpg?fit=1200%2C492&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Angola-terrestrial-bassins.jpg?fit=1200%2C492&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Angola-terrestrial-bassins.jpg?fit=1200%2C492&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=11892"}],"version-history":[{"count":2,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11892\/revisions"}],"predecessor-version":[{"id":11894,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11892\/revisions\/11894"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/8258"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=11892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=11892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=11892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}