Angola to Maintain Oil Production at 1.1 Million bpd Until 2027 to Boost Output to Over 2 Million bpd Post-2027

For decades, Angola's oil and gas industry has delivered substantial returns for investors, supported by economic stability, proven petroleum plays, and strong local partnerships.

Angola has announced plans to maintain its oil production at 1.1 million barrels per day (bpd) until 2027, with a strategic increase to over 2 million bpd thereafter to stimulate economic growth. As a cornerstone of the nation's economy, Angola's oil and gas industry has undergone significant reforms since 2017, with the government ensuring competitive fiscal and contractual terms to attract investors. In light of this, the African Energy Chamber (AEC) is urging global exploration and production companies, as well as technology providers, to invest in Angola, recognizing it as one of Africa's largest producers and an emerging regional hub.

For decades, Angola's oil and gas industry has delivered substantial returns for investors, supported by economic stability, proven petroleum plays, and strong local partnerships. The sector's attractiveness has been further enhanced by a six-year licensing round introduced in 2019, offering both proven and frontier exploration opportunities. The premier industry event, Angola Oil & Gas (AOG), returns for its fifth edition on October 2-3, 2024, endorsed by the AEC, and aims to connect international stakeholders with investment opportunities in Angola's oil and gas market.

AOG 2024: Premier Oil and Gas Event AOG 2024, the largest oil and gas event in Angola, is supported by the Ministry of Mineral Resources, Oil and Gas; Sonangol; the National Oil, Gas and Biofuels Agency; the AEC; and the Petroleum Derivatives Regulatory Institute. The event serves as a key platform for signing deals and advancing Angola's oil and gas industry. Interested sponsors and delegates can contact sales@energycapitalpower.com for participation details.

Strategic Opportunities for Upstream Players Despite being a mature oil market, Angola continues to offer frontier exploration opportunities. Notably, TotalEnergies recently reached a final investment decision (FID) on the Cameia and Golfinho fields in Block 20/11, part of the $6-billion Kaminho deepwater project, with production expected by 2028. Additionally, ExxonMobil announced a significant oil discovery at the Likember-01 well in Block 15, highlighting extended hydrocarbon deposits.

Other projects progressing include the Soyo II Combined Cycle Power Plant, the Quiluma and Maboqueiro gas project set for production in 2026, and the Agogo Integrated West Hub development targeting mid-2026 for production. Saipem secured an $850-million contract from Azule Energy for developing the Ndungu oil field, with FID expected later this year.

Ongoing Licensing Rounds and Future Opportunities Angola's ongoing multi-year licensing rounds ensure continuous access to new exploration blocks. Since 2019, over 27 blocks have been awarded, with the latest tender receiving 53 bids for 12 blocks. A 2025 Limited Public Tender will offer up to 10 offshore blocks in the Kwanza and Benguela basins, presenting lucrative opportunities for investors.

Infrastructure Investments to Enhance Returns Angola is also committed to expanding its downstream infrastructure, promising high returns for capital, technology, and service providers. Current projects include the development of three new refineries in Soyo, Cabinda, and Lobito, alongside upgrades to the Luanda refinery. These developments will boost Angola's refining capacity to over 400,000 bpd. Engineering company KBR has been contracted for the Lobito refinery, and the Cabinda refinery's first phase is on track for 2024 production.

Furthermore, Angola sealed a $5-billion pipeline deal with Zambia to expedite regional exports, and other key infrastructure projects include the Petromar Fabrication Yard in Soyo, the Paenal Fabrication Yard in Kwanza Sul, and the Barra do Dande Ocean Terminal. Investments in these infrastructures will enhance regional market access and drive further growth in Angola's oil and gas sector.