Angola has emerged as an investment hotspot in recent years, with a suite of global energy majors, independent oil and gas firms and service companies either expanding their presence or entering the promising market
While the country has long-seen foreign capital flow into the market, heightened investment flows in recent months have largely been due to advancements across the oil and gas infrastructure sector.
Coupled with attractive fiscal policies, Angola’s attractiveness as an investment destination is expected to increase even further, and the country’s premier energy event – the Angola Oil & Gas (AOG) conference which returns for its fourth edition in 2023 under the theme ‘Investing in Angola’s Oil and Gas Infrastructure is Investing in the Future’ – will showcase the range of infrastructure and associated energy investment opportunities across the Angolan market.
Upstream prospects open new frontiers
The Angolan government’s agenda to maximise the rollout of infrastructure across the upstream sector – in a bid to boost oil and gas reserves and production capacity and to take advantage of increases in global energy prices – is boosting the flow of investments within the oil and gas industry while driving economic and gross domestic product growth.
While projects such as the US$12bn, 5.2-mn-ton per annum Angola Liquefied Natural Gas development have already attracted significant levels of capital, planned developments including Eni’s Quiluma/Maboqueiro field development; the Agogo Oilfield Development in Block 15/06; the Ndungu EP Development; Chevron’s Sanha Lean Gas project; and TotalEnergies’ CLOV 3 and ACCE projects are set to see further investment flow across the upstream market as service companies and infrastructure players seize opportunities. Furthermore, as new exploration campaigns kick off through Angola’s eight-block 2021/22 licensing round, the country’s investment prospects have only increased.
Regional midstream projects spark interest
With Angola seeking to optimise the exploitation of its 9 bn barrels of proven oil resources and 11 tn cu/ft of proven natural gas reserves, investment opportunities across the country’s midstream sector have grown. With a national drive to develop recent oil and gas discoveries and scale up domestic refining capacity, the development of midstream infrastructure has emerged as a top priority, and therefore, a highly attractive investment opportunity.
Efforts are already underway to build new facilities and expand existing port, road and rail transport infrastructure while scaling up oil and gas storage. Examples include the US$500mn Barra do Dande Ocean Terminal, comprising import and export infrastructure and storage facilities, as well as the Lobito Corridor, a strategic export route stretching from Port of Lobito in Angola through the mining areas of Katanga Province in the Democratic Republic of the Congo and the Copperbelt in Zambia. Construction is underway for the Barra do Dande Terminal while the three respective countries signed an agreement for the development of the corridor earlier this year. Such infrastructure growth opens new investment prospects across Angola while shaping socioeconomic development for decades to come.
Downstream opportunities entice players
In the downstream sector, national objectives to position Angola as a regional energy hub have opened new opportunities for infrastructure growth while consolidating the country’s position as the investment destination of choice. A number of ambitious projects have already kicked off including three new refinery developments: the 200,000 barrels per day (bpd) Lobito Refinery, the 100,000 bpd Soyo Refinery and the 30,000 bpd Cabinda Refinery.
Aimed at expanding and modernising refinery capacity to meet growing regional energy demand while reducing the country’s dependence on expensive energy imports, these developments have triggered newfound opportunities across not only the refining industry but associated markets. Regional neighbours are also turning to the country, with Zambia pursuing the development of the US$5bn Angola-Zambia Oil Pipeline, connecting the country with Angola’s Lobito Refinery. As such, investment prospects have enhanced.