Angola is taking a hands-on approach to grow and revitalize its economy. Recently, the government has implemented several reforms to attract foreign investments and create a conducive environment for both local businesses and international corporations.
Angola’s reforms and policies
The Angolan government, through the Ministry of Mineral Resources, Petroleum, and Gas, has introduced regulatory reforms and supportive policies that have laid the foundation for billion-dollar deals in the oil and gas sector.
These reforms include optimizing deep-water projects, offering attractive terms for onshore exploration, and incentivizing local Angolan companies.
Additionally, Angola has established a New Gas Consortium to enhance gas exploration and restructured the national oil company, Sonangol, to focus on exploration, research, production, refining, liquefaction, transportation, storage, distribution, and commercialization of oil and gas products. The introduction of the downstream regulator IRDP further supports these efforts.
To boost oil and gas production, Angola is conducting a six-year licensing round spearheaded by the National Oil, Gas & Biofuels Agency (ANPG). This strategy has been instrumental in attracting and securing investments in Angola’s oil and gas sector.
For instance, in January 2024, the ANPG concluded the 2023 licensing round, offering 12 blocks in the Lower Congo and Kwanza basins. 53 bids were submitted, demonstrating a strong interest in the country’s acreage.
The Angolan government has also moved to support the companies doing business in Angola by simplifying travel and entry processes. In 2023, it implemented a measure that allows citizens from 90 countries to travel to Angola visa-free, supporting travel and commerce.
Additionally, Angola introduced a one-stop shop for local content compliance in the oil and gas industry. The idea was to enhance transparency and policy implementation across the sector. Coupled with an amended Local Content Policy, which clarifies local content requirements and creates new opportunities for local service providers, this initiative generates revenue for the country.
Impact of the reforms
These reforms have attracted International Oil Companies (IOCs) keen on developing large-scale projects. One such company; Total Energies, is driving a multi-energy strategy in Angola, which includes investments in deep-water exploration and developing the $850 million Begonia field.
The oil giant recently made a final investment decision(FID) on the $6 billion Kaminho development, the largest deep-water development in the Kwanza Basin, expected to be operational before the end of 2025.
Additionally, Azule Energy’s Agogo Integrated West Hub Development is expected to produce 120,000 barrels per day by 2026. This is part of the country’s strategy to increase national oil output.
American multinational ExxonMobil is also planning to invest about $200 million in oil exploration in the Namibe Basin, where the company plans to drill an offshore frontier exploration well by late 2024.
Following the results of this and other exploration projects, the energy giant plans to invest upwards of $15 billion in developing hydrocarbons.
On the gas front, the Angola LNG Project, a partnership between Sonangol and energy multinationals Chevron, TotalEnergies, and Azule Energy, aims to boost the country’s LNG production capacity.
The 5.2 million tons per year capacity project, has been producing and exporting LNG for several years and is expanding to increase its output and storage capabilities.
A new terminal and logistics hub in Soyo will produce 65,000 barrels per day and store 2 million barrels. This Public-Private Partnership project offers importation exemptions and a ten-year tax break as well as a license duration of 15 to 25 years. Operations are expected to begin in 2026.
“Angola continues to attract investment through various initiatives and the results are already showing in the oil and gas industry. By offering new exploration blocks, enhancing local content policies to boost domestic industry participation and improving infrastructure to support project logistics, the country is creating a robust and sustainable energy sector that contributes to Angola’s economic growth,” AEC chairman NJ Ayuk Executive Chairman of the AEC stated.
“The government continues to address challenges to doing business by promoting travel and commerce, tackling above-ground risks such as visas, and engaging with Angolan companies. This will catalyze growth in the country,” he added.
These reforms have served to attract foreign investments into the country and promise to catalyze economic growth across the country.
