Angola is the second largest oil producing country in sub-Saharan Africa and an OPEC member with output of approximately 1.55 million barrels of oil per day (bpd) and an estimated 17,904.5 million cubic feet of natural gas production. Angola holds approximately 9 billion barrels of proven oil resources and 11 trillion cubic feet of proven natural gas reserves. This represents great potential for further economic development and significant business opportunities.
Production levels of oil and gas are expected to increase by 2020 owing to fact that the country is undergoing industry restructuring, including the “regeneration” (reorganization) of the state oil company Sonangol in addition to the revision of legislation related to oil and gas. This is intended to spur growth in the sector, encouraging exploration in development areas, improving operation efficiencies, reducing taxes, empowering the private sector, and attracting investors.
In October 2017, a technical taskforce was created to address crucial issues, reviewed, developed and reformed the concessions’ award and management process, marginal field abandonment process, the natural gas law, and projects in development areas and this led to enactment of two new laws and three amended Presidential Decrees. The new gas law will provide an enabling framework to maximize the value of Angolan gas, given Angola’s considerable proven natural gas reserves. It is postulated that Angola’s natural gas industry targets to supply 21 percent of Angola’s energy needs by 2025.
As earlier established that there exists large potential of untapped oil reserves in Angola, mostly at deep and ultra-deep waters, Sonangol announced a round of bids for exploration of five onshore blocks late last year. Development of these blocks is expected to drive continued demand for investment, oil equipment, and services. The Angolan government has also proposed the construction of national refinery plants and upgrading existing ones all in the bid to boost productivity and efficiency