Angolan President João Lourenço announced that the country will continue implementing the Program of Development and Consolidation of the Oil and Gas Sector. A multi-faceted strategy aimed at both boosting oil and gas production, the program seeks to maintain oil production above one million barrels per day (bpd) while stimulating investment across the natural gas industry.
To support production, the government is preparing to launch the next round of its multi-year licensing strategy in Q1, 2025. Offering 9 blocks for exploration, the round follows the conclusion of a 2023 tender in early 2024, which secured over 53 bids from companies. The strategy aligns with national goals to address production decline.
“Our main focus is on increasing the reserve replacement rate and the materialization of opportunities to ensure the maintenance of levels of production above one million bpd. We have [made available] 12 blocks in the Lower Congo and Kwanza onshore basins, with six blocks having been awarded through public tender,” stated President Lourenço.
Meanwhile, with oil accounting for 29% of GDP and 95% of exports, the Angolan government aims to reduce the reliance on crude by increasing the share of natural gas to 25% of the energy mix by 2025. To support the utilization of gas in electrical and industrial applications, the country is incentivizing investment in upstream gas projects. Major projects include the Quilumba and Maboqueiro project – which achieved FID in 2022 – and phase 2 of the Falcão Project.
“The Falcão Project will allow us to achieve our objective of creating a gas industry, supplying gas to the future ammonia and urea plant that is being built in Soyo. Additionally, we are completing the installation of a gas platform in Block 0, which will send 420 million cubic feet of natural gas per day for the Angola LNG plant,” President Lourenço added.
In the downstream sector, the Program of Development and Consolidation of the Oil and Gas Sector outlines clear targets to boost national refining capacity. Various projects are in the pipeline to this effect. According to President Lourenço, “The Cabinda Refinery is expected to begin in 2025, operating and refining around 30,000 bpd in the first phase until reaching 60,000 bpd once the second phase is complete. Work is underway for the Lobito Refinery, the largest in the country designed to refine 200,000 bpd.”
With the increase in refining capacity, the country is correspondingly investing in infrastructure projects that boost storage capacity. Major projects include the Barra do Dande Ocean Terminal. Anticipated to be complete in 2025, the terminal will have a storage capacity of 582,000 cubic meters of various fuels. Additionally, Angola is modernizing the Cabinda, Lobito and Namibe ocean terminals.
