Angola invests USD 60 billion to strengthen its oil and gas sector

Angola is set to consolidate its position as a major energy hub in Africa thanks to a colossal investment of USD 60 billion in its oil and gas industry over the next five years. This ambitious initiative, led by the National Agency for Oil, Gas and Biofuels (ANPG), aims to maintain crude oil production above one million barrels per day (b/d) while developing natural gas and refining capacities to meet national and regional energy needs.

The investment programme includes several flagship projects that will transform Angola's energy landscape. A key development is the Agogo West Integrated Centre, scheduled to come online in 2025, which will boost offshore oil production. In addition, the country's first non-associated gas project, led by the New Gas Consortium (comprising Azule Energy, Cabinda Gulf Oil Company, Sonangol E&P and TotalEnergies), is expected to begin production in late 2025 or early 2026. This USD 2.4 billion project, targeting the Quiluma and Maboqueiro fields, will produce 330 million standard cubic feet per day (mmscf/d), contributing to Angola's goal of increasing the share of natural gas in its energy mix to 25% by 2025.

The Cabinda Refinery, a USD 920 million project in partnership between Gemcorp (90%) and Sonangol (10%), is another pillar of this strategy. Scheduled to begin operations in July 2025, the refinery will initially process 30,000 b/d, with a goal of doubling its capacity to 60,000 b/d in a second phase, producing diesel, jet fuel and gasoline. Other downstream developments include the future Lobito Refinery (200,000 b/d) and the Soyo Refinery (100,000 b/d), aimed at reducing the USD 2 billion spent annually by Angola on importing refined petroleum products.

The Angolan upstream sector is also experiencing significant activity. ExxonMobil is advancing a USD 15 billion exploration programme in the Namibe Basin, the results of which are expected to reveal new resources. The company is also redeveloping Block 15, where more than 2.6 billion barrels have been produced, through an 18-well programme aimed at extending the block's life by two decades. In addition, Alfort Petroleum, the operator of Block KON 8, has completed seismic acquisition and plans to begin drilling by the fourth quarter of 2025 or the first quarter of 2026. Etu Energias aims to increase its production to 80,000 b/d by 2030 through the optimisation of its assets and the development of new blocks.

Azule Energy, formed from the 2022 merger of bp and Eni's Angolan operations, is striving to increase its production to 250,000 b/d. The company is advancing the Kaminho project alongside TotalEnergies, strengthening Angola's offshore capabilities. For its part, Chevron is boosting gas development through the Sanha Lean Gas Connection project, which began supplying 600 mmscf/d to the Angola LNG plant in December 2024.

Under the leadership of President João Lourenço and Minister of Mineral Resources, Petroleum and Gas Diamantino Azevedo, Angola has implemented reforms to attract foreign investment. The creation of ANPG as a national concessionaire, the privatisation of Sonangol and the revision of tax codes have enhanced transparency and competitiveness. Angola's exit from OPEC in December 2023 has allowed for greater flexibility in production management, with projections indicating an increase to 1.17 million b/d by 2026.

The Angola Oil & Gas (AOG) 2025 conference, scheduled for 3–4 September in Luanda, will serve as a platform to connect regulators, industry players, and global investors. The event will highlight Angola's Gas Master Plan, targeting the development of more than 40 gas fields, as well as the upcoming 2025 licensing round, offering nine offshore concessions in the Kwanza and Benguela basins.

The oil and gas sector accounts for approximately one-third of Angola's GDP and 87% of its export revenues, underscoring its economic importance. The USD 60 billion investment is expected to create thousands of jobs, stimulate local businesses, and support infrastructure projects such as the US-backed Lobito Corridor, promoting regional energy trade. Angola has also prioritised sustainability, reducing gas flaring by 60% over the past 15 years and investing in green hydrogen and solar energy projects, such as the Quilemba solar project (45 MW).

Angola's strategic investments and regulatory reforms demonstrate a strong commitment to energy security and economic diversification. As Alcides Andrade, Executive Director of ANPG, pointed out at CERAWeek in Houston: "The industry is global, and capital will go where it is best received. " With a robust portfolio of projects and international partnerships, Angola is well positioned to maintain its status as Africa's leading oil and gas producer while paving the way for a balanced energy transition.