More than 90% of companies operating in the downstream sector in Angola are local companies, Luis Fernandes, General Manager of the Petroleum Derivative Regulatory Institute (IRDP) of Angola, told Energy Capital & Power.
In an exclusive interview held during Angola Oil & Gas 2024 last week, Fernandes said the increase in local firms in the sector is owing to the government’s prioritization of local content development in the oil and gas industry.
“Six years ago, Angola changed its oil and gas industry model with the establishment of the IRDP to regulate downstream operations,” stated Fernandes, adding “Since then, we have adopted a series of policies and programs such as the Angolanization which have brought fresh investments from the local private sector and international markets.”
Lower capital requirements for downstream projects also enable greater participation from local companies, according to Fernandes. He said the IRDP expects local firms in the downstream sector to expand as Angola intensifies its local content strategy and oil and gas industry expansion.
Commenting on projects underway to expand Angola’s downstream sector, Fernandes added, “We are building three new refineries, expanding storage capacity and promoting the buildup of new service stations to bolster distribution of petroleum products nationwide and across the region.”
The IRDP is seeking investment partners to expand LPG distribution for clean cooking, according to Fernandes.
On downstream sector sustainability, he said refineries are installing modern technologies to produce cleaner fuels and service stations installing solar panels and limiting single-plastic use to reduce their carbon footprint.
“There are some other initiatives in which we are working with companies to adopt practices that are in line with energy transition requirements,” reiterated Fernandes.
