Angola’s Oil Industry: A Target for Global and Regional Players, But Why?

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Angola has become a sought-after investment destination attracting global energy leaders, independent firms, and service companies keen on tapping into its oil sector. Recent years have witnessed a surge in foreign investment in the country, thanks in large part to significant advancements in the oil and gas infrastructure industry. Coupled with favorable fiscal policies, Angola’s appeal as an investment location is set to rise even further. The upcoming Angola Oil & Gas (AOG) conference, set to take place in 2023 under the theme of “Investing in Angola’s Oil and Gas Infrastructure is Investing in the Future,” offers a platform to showcase the range of infrastructure investment opportunities within Angola’s market.

Upstream opportunities herald new beginnings

The Angolan government’s push to expand infrastructure in the upstream sector to maximize production capacity and oil and gas reserves has boosted the flow of investments and driven economic growth. Projects such as Angola Liquefied Natural Gas’s $12 billion, 5.2-million-ton-per-annum development have already attracted a significant amount of investment. Planned projects such as Eni’s Quiluma/Maboqueiro field development; Chevron’s Sanha Lean Gas project; and TotalEnergies’ CLOV 3 and ACCE projects are set to increase the investment flow in the upstream sector. As such, the country’s investment potential has grown, especially with new exploration campaigns starting through Angola’s eight-block 2021/22 licensing round.

Regional midstream ideas gather momentum

Angola’s 9 billion barrels of confirmed oil and 11 trillion cubic feet of proven natural gas reserves have created a favorable investment climate in the midstream sector. Increasing domestic refining capacity and exploiting recent oil and gas discoveries, the midstream infrastructure has become a top priority and a highly attractive investment opportunity. The development of new oil and gas storage facilities and the expansion of existing port, road, and rail transportation infrastructure are currently underway. Examples include Lobito Corridor and the $500 million Barra do Dande Ocean Terminal, which constitute investment prospects shaping Angola’s socio-economic development for years to come.

Downstream opportunities entice investors

Angola’s objective to position itself as a regional energy hub has opened new infrastructure investment opportunities in the downstream sector. Three new refinery developments are already underway, including Lobito Refinery, Soyo Refinery, and Cabinda Refinery. By modernizing refinery capacity, Angola aims to reduce its dependence on expensive energy imports and accommodate the growing regional energy demand. These refinery developments have triggered further opportunities for investment not only in the refining industry but also associated markets. The country’s regional neighbors, such as Zambia, are looking to invest in Angola, with the $5 billion Angola-Zambia Oil Pipeline project set to connect the country with Angola’s Lobito Refinery.

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