Available in Portuguese.
Angola’s investment outlook for the next five years is estimated at $60 billion, with the country’s next licensing round – organized under a six-year program launched in 2019 – slated for 2025. The round is expected to drive a fresh wave of investment into the market.
Spearheaded by the Ministry of Mineral Resources, Petroleum and Gas and the National Oil, Gas & Biofuels Agency (ANPG), 26 blocks have been awarded under the six-year licensing round to date, showcasing the level of interest and scale of opportunity present in Angola.
Speaking during CERAWeek in Houston last week, the ANPG’s Executive Administrator Alcides Fernandes Mendes de Andrade shared insight into existing block opportunities, highlighting the government’s pro-investment approach to contract negotiations and licensing rounds. With the country’s premier industry event – Angola Oil & Gas (AOG) – coming up this October (2-4), the presentation laid the foundation for deals to be signed in Luanda.
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; the National Oil, Gas and Biofuels Agency ANPG, the Petroleum Derivatives Regulatory Institute IRDP, the national oil company Sonangol and the African Energy Chamber. 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 sales@energycapitalpower.com.
Angola: A Proven Play with Abundant Potential
Angola aims to maintain oil production at 1.1 million barrels per day (bpd) until 2027, thereafter increasing output beyond 1.18 million bpd on the back of new developments. At the same time, the country plans to utilize natural gas for 25% of its energy needs by 2025 by scaling-up investment in gas-related exploration and infrastructure. To achieve these goals, the ANPG established a multi-year-round to promote continuous investment in exploration and production.
Currently, seven concessions are under negotiation from the country’s recent 12-block tender, which concluded in January 2024. Up to 53 bids were submitted in this round alone, with negotiations taking place for four onshore blocks – in the Lower Congo and Kwanza basins – and three deepwater blocks (24, 49 and 50. At present, 13 concessions are under production in Angola while 27 are under exploration and four are under development, showcasing the wealth of opportunity in the market.
“We have a wide range of opportunities – 14 blocks offshore, shallow and deepwater – that are available for direct negotiations. We also have an additional eight blocks onshore available. Many of these are blocks from proven basins with high prospectivity and potential,” stated Mendes de Andrade in Houston.
Angola’s upstream attractiveness largely comes from its proven success. According to the ANPG, pre-salt and post-salt oil potential has been proven in more than 50 years of production history in the Lower Congo and Kwanza basins while the positive results of the wells drilled in the Angolan sedimentary basins prove the existence and functionality of the petroleum system in all plays of stratigraphic intervals. Identified leads and proven deposits provide a level of confidence for new investors in both on- and offshore exploration.
This year, Angola plans to drill 43 wells, including the first in the frontier Namibe Basin. Energy major ExxonMobil plans to invest up to $200 million in seismic studies for the basin, thereby expanding geological understanding of the area.
“The road ahead presents many challenges and our focus will continue to be on identifying solutions and reforms [including] legal, fiscal, contractual and others to ensure we remain competitive and attractive for investment. We believe in win-win solutions for all parties and are focused on ensuring [investors] are able to recover and have favorable returns,” Mendes de Andrade said.
A Focus on Logistics and Regional Development
In addition to exploration and production, Angola’s medium and long-term strategy encompasses increasing infrastructure capacity. According to the ANPG, the strategy aims to promote the existence of an integrated functional facility to support upcoming E&P business activity and featured several projects in the pipeline. These include a 650,000-bpd crude oil processing and storage terminal; and an oilfield logistics and supply hub to support onshore Lower Congo and Kwanza Basin operations. Together, these developments will lead to an integrated joint project facility.
Additional project opportunities include the Soyo Integrated Terminal and Logistics Hub, with a capacity to produce 65,000 bpd and store two million barrels. Developed under a PPP model, the project features favorable regulation and offer an exemption on importations and a ten-year tax holiday. The Kwanza Terminal and Pipeline routes – located in the Kwanza Basin – has a capacity to process 25,000 bpd and store one million bpd. Also developed under a PPP, the project offers similar financial incentives to that of the Soyo terminal.
Join the AOG 2024 conference today and capitalize on the opportunities the growing Angolan economy has on offer. Covering the entire oil and gas value chain as well as associated sectors such as infrastructure, manufacturing, transport and ICT, the event connects companies to opportunities. Visit www.angolaoilandgas.com for more information.
