Oil & Gas

The Angolan oil market features developed infrastructure and a stable political environment. Angola aims to boost its oil production to over 1.18 million barrels per day, with current production at approximately 1.1 million barrels per day. As one of Africa's leading oil producers, Angola is dedicated to providing a competitive investment environment.

The Angolan oil market offers promising investment opportunities, thanks to the country's substantial reserves, strategic location, stable political climate, industrial expertise, diversification potential, developed infrastructure, and a growing domestic market. These factors create compelling opportunities for investors seeking high returns in new markets.

The former Portuguese colony aims to increase its oil production to more than 1.18 million barrels per day and enhance its gas sector to contribute 25% to the country's electricity needs by mid-decade (2025). Untapped potential, including the onshore Kwanza basin and the deep-water Namibia basin, presents golden opportunities for investors, according to the Washington-based Specialized Energy Platform.

Five Temptations for Investors: Angola, a major oil producer in Africa, is committed to fostering a competitive investment environment through favorable policies and regulatory reforms to boost investor confidence and attract foreign investment in exploration and production activities (Upstream).

1. Continuous Competitiveness: Angola's National Hydrocarbon Agency (ANPC) plans to launch a limited public tender in 2025, offering 10 marine blocks in the Kwanza and Benguela basins in the first quarter. The tender aims to raise production to over 1.18 million barrels per day by 2027. Since 2017, Angola has implemented industry reforms to ensure a competitive market, including a six-year licensing round starting in 2019, offering annual investment opportunities in oil exploration and licenses for local and international players. The most recent tender for 12 oil blocks in the Kwanza and Bas-Congo basins attracted 53 bids, highlighting significant interest in Angola's resources.

2. Strong Relations with International Oil Companies: Angola's historical ties with major international oil companies, such as Chevron, ExxonMobil, BP, and Eni, support the market, offering opportunities for partnerships and cooperation. While some international companies are selling assets, independent small players have opportunities to enter this vital market.

3. Attractive Contract Terms: Angola offers regulatory flexibility for oil and gas agreements. Besides production-sharing agreements, Angola introduced risk services contracts in 2020 and the Permanent Bids Programme in 2021, allowing new contract negotiations without tender rounds. The 2022 Tax Benefits Act provides new incentives for oil companies, with the government ready to discuss terms to ensure generous returns for investors.

4. Enormous Resources: Angola stands out as a leading oil producer in sub-Saharan Africa, with reserves estimated at 9 billion barrels of oil and 11 trillion cubic feet of natural gas. The government's updated exploration strategy (2020-2025) highlights the significant potential within the country's geological concessions and basins, including the Kwanza and Namibi basins.

5. Supporting Oil and Gas Infrastructure: Angola's robust infrastructure supports the oil market, reducing costs and time for new projects. This includes the 65,000 barrels per day Luanda refinery, with plans to expand to 72,000 barrels per day, and local pipeline systems. Ongoing projects include a $920 million refinery in Cabinda, a 100,000 bpd refinery in Soyo, and a 200,000 bpd refinery in Lobito. Additionally, a $5 billion deal with Zambia to build a pipeline will help investors access regional markets and facilitate exports within Africa. Angola's strategic west coast location provides easy access to global markets, opening new client bases in the Southern African region.