The African Energy Chamber (AEC) has highlighted the opportunities provided by Angola’s oil and gas industry. The Chamber points out that oil and gas forms the lynchpin of the Angolan economy and that, since 2017, it has been subject to “aggressive reform”. Since 2019, the country has been undertaking multiyear licensing rounds for offshore blocks for both oil and gas exploration and production, open to foreign enterprises. So far, this policy has seen the awarding of more than 27 such blocks. The most recent of these rounds saw 53 bids for 12 blocks in the Lower Congo and Kwanza basins.
The AEC is particularly urging multinational exploration and production, and technology, companies to invest in Angola. The organisation points out that the West African country plans to keep its oil production running at 1.1-million barrels per day (bpd) until 2027. After that, production will be stepped up to more than 2-million bpd, to boost economic growth.
“For decades, Angola’s oil and gas industry has delivered high returns for investors, with economic stability, proven petroleum plays and strong local partners underpinning the success of multimillion-dollar investments,” affirmed the AEC. “While recognised as a mature oil market, Angola continues to offer frontier opportunities for explorers.”
The country offers new, especially deepwater, fields for development. Examples are the Cameia and Golfinho fields, part of Block 20/11, which forms part of the Kaminho deepwater project (which had a total value of $6-billion). TotalEnergies is developing these fields and the start of production is set for 2028.
But there are also new opportunities in the established production blocks, the AEC also points out. Exploration drilling in these blocks has also resulted in new hydrocarbon discoveries. An example is the oil discovery by ExxonMobil’s Likember-01 exploration well, in offshore Block 15.
Further, there are associated infrastructure projects, offshore and onshore. These include the Soyo II combined cycle power plant (construction is planned to start this year), a $5-billion pipeline project to allow hydrocarbon exports to Zambia, the Petromar Fabrication Yard in Soyo, the Paenal Fabrication Yard in Kwanza Sul, and the Barra do Dande ocean terminal. Further, three new oil refineries are already in development in the country, at Cabinda, Lobito and Soyo, while the Luanda oil refinery is being upgraded. These projects will take Angola’s refining capacity to more than 400 000 bpd.
And there are also opportunities for investors, by providing management and technical services. For example, last year engineering group KBR was contracted to provide management services for the 200 00 bpd capacity Lobito refinery.
AEC is the organiser of the Angola Oil & Gas 2024 conference, which will take place in Luanda in early October.