Angola Advances in Oil Sector Investments Amidst Energy Transition

The Angolan government has launched a series of strategic initiatives aimed at bolstering investment in the oil sector, meticulously addressing the challenges posed by the global energy transition. José Alexandre Barroso, Secretary of State for Petroleum and Gas, highlighted the dual-focused strategy aimed at harmonizing the exploration of hydrocarbon resources with sustainable development imperatives.

As the world pivots towards renewable energies, Angola positions itself to attract investors by demonstrating its commitment to this global shift. Alcides Andrade, Executive Director of the National Oil and Gas Agency (ANPG), praised Angola's adaptability to international trends through a robust and evolving regulatory framework that promises stability and growth.

Angola’s Strategic Departure from OPEC to Revitalize its Oil and Gas Market

Angola's withdrawal from OPEC in December 2023, driven by disagreements over production quotas, marks a pivotal moment. This decision highlights Angola's dedication to fostering partnerships and exploring innovative avenues to rejuvenate its oil and gas industry. Currently producing about 1.1 million barrels of crude oil per day, Angola aims to maintain these volumes until 2027. José Barroso underscored that Angola continues to collaborate with OPEC, not ruling out a potential return to the organization.

Angola's Emphasis on Gas Production to Meet Energy Needs

Further, José Barroso announced Angola’s ambition to have the gas sector contribute to 25% of the country’s energy needs by 2025. To reach this milestone, the government is encouraging investments in exploration and production within the oil and gas sector by reforming the market and introducing a flexible regulatory framework.

Angola is considering the development of a floating liquefied natural gas (LNG) facility if its Block 24 field has sufficient reserves. This initiative aims not only to export LNG but also to foster the development of steel and petrochemical manufacturing, underlining the country's broader economic diversification and sustainable development goals.