Continental Focus, International Reach

Angolan Reform Agenda Pays Dividends

Tuesday, May 21, 2019

The ambitious reform agenda of Angolan President João Laurenço and his Minister of Mineral Resources and Petroleum, Dr. Diamantino Pedro Azevedo, has already resulted in increased investment from the country’s biggest European operators.  The country has emerged as a hub of foreign direct investments within the continent. This has resulted in increased investments out of Europe and the prospects of attracting more FDI this year are bright.

According to the African Energy Chamber, this current state of play now presents an opportunity for North American companies to re-engage and re-invest in the Angolan market.

“Angola has repositioned itself as a strategic oil investment hub and has made itself attractive to American oil firms to take a new look as Africa becomes once again a target for the US oil industry,” said Jude Kearney, former Deputy Assistant Secretary for Service Industries and Finance at the U.S. Department of Commerce during the Clinton Administration and President of Kearney Africa. “American and many other foreign investors are paying close attention to the wave of reforms in Angola and will embrace it by investing their dollars. The Angola Oil & Gas Conference on June 4-6, championed by the President, will be key in this regard.”

Angola just released a new oil licensing strategy up to 2025, and is about to launch next month and for the first time a bidding round that includes marginal oil fields with an attractive fiscal framework. Angola’s economic recovery is being driven by investments in the country’s oil and gas sector, with the country’s energy sector attracting well over $1 billion of investment commitments over the past few months.

The charge is notably led by international oil companies increasing the size of their operations in the country, including Total at Kaombo, ExxonMobil in the Namibe Basin or BP at the Platina Field. US oil & gas service companies like Halliburton or Baker Hughes GE also still dominate the sector and are likely to further invest in technology as the country ramps up exploration efforts. American firms have traditionally led investments within Angola’s oil sector, especially under the Strategic Partnership Agreement the US has with Angola, one of just three in sub-Saharan Africa.

“Angola is back and the oil and gas sector is posed to rebound after the economic recession. We believe the new investment must also include strong support for job creators in the oil sector and for the socio-economic empowerment of Angolans. The market-driven policies are working, and we will encourage the oil industry and the government to work together and do more deals,” declared Sergio Pugliese, President of the African Energy Chamber in Angola.

ENI’s recent light oil discovery this year in Block 15/06 confirmed that Angola does not disappoint for whoever is ready to bet on the country’s vast reserves.

“This sends a strong message to the industry and we will continue to advocate for the presence of US companies when in comes putting world class fields into development and also focusing on exploration as there is no production without investing in exploration to find more oil,” added Sergio Pugliese.


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