Angola Oil & Gas Sector Overview

Sector Overview

Angola is Africa's second-largest oil producer (after Nigeria), producing approximately 1.1 million barrels per day. The petroleum sector accounts for roughly 95% of exports and approximately 60% of government revenue, making it the dominant engine of the Angolan economy. In January 2024, Angola exited OPEC, freeing the country to set its own production targets without quota constraints — a strategically significant decision that prioritizes maximizing output from existing and new developments like the Kaminho project.

Angola's petroleum production comes primarily from deepwater offshore operations in the Lower Congo Basin (Blocks 0, 14, 15, 15/06, 17, 18, 31, 32) and increasingly from the frontier Kwanza Basin (Block 20/11). Key international operators include TotalEnergies, Eni/Azule Energy, ExxonMobil, Chevron, and BP, alongside national company Sonangol and newer entrants like Petronas.

Institutional Framework

Angola's petroleum sector is governed by a reformed institutional architecture. The MIREMPET (Ministério dos Recursos Minerais, Petróleo e Gás) sets sector policy. The ANPG is the national concessionaire managing exploration and production contracts. Sonangol has been transformed from a regulatory body into a competitive upstream operator. The IRDP (Instituto Regulador dos Derivados de Petróleo) regulates downstream operations. This separation of regulatory and commercial functions — a key reform under President João Lourenço — improved governance and attracted international investment.

Production Challenges

Angola faces a structural challenge: natural production decline of approximately 10% per year from mature deepwater fields. Sustaining output above 1 million bpd requires continuous investment in new developments, field extensions, and enhanced oil recovery. TotalEnergies addresses this through multiple projects — Begonia Phase 3, CLOV extensions, Dalia and Pazflor optimization — alongside the Kaminho development. The government's target is maintaining 1.1 million bpd through 2027 and potentially increasing to 2 million bpd longer-term.

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