Angola’s Oil Sector Attracts Over $14 Billion Annually, Plans $70 Billion Investment to Maintain Output Through 2030
Angola’s oil sector has attracted more than $14 billion in annual investment over the past three years, a significant increase from the approximately $8 billion per year recorded in 2019, according to the head of the National Agency for Petroleum, Gas and Biofuels (ANPG).
ANPG President Paulino Jerónimo presented the results of the agency’s 2019–2025 cycle and outlined priorities for 2026–2030, stating that total investment is projected to reach $70 billion over the next five years.
A central objective is to maintain national crude oil production above one million barrels per day through 2030.
Managing Decline in Mature Fields
Jerónimo acknowledged that Angola faces natural production decline rates of approximately 15 to 16 percent per year in its mature offshore fields.
Unlike the early 2000s, when large-scale discoveries drove rapid output growth, more recent discoveries are smaller, typically producing between 50,000 and 70,000 barrels per day.
Despite these challenges, ANPG maintains that Angola’s reserve base remains sufficient to sustain medium-term production.
The government has extended several major concession contracts, including Block 15 through 2038 and Block 17 through 2045, reflecting confidence in available reserves and ongoing recovery efforts.
Authorities expect that new discoveries and future licensing rounds could extend production beyond 2050.
Regulatory Reforms and Investment Incentives
According to ANPG, reforms introduced in recent years have strengthened Angola’s competitiveness. A 2022 benchmarking study comparing Angola’s fiscal and contractual terms with other oil-producing jurisdictions identified areas for improvement, particularly incentives for mature fields.
Subsequent regulatory adjustments have focused on enhancing returns for investors, accelerating marginal field development, and optimizing production from existing assets.
These measures have contributed to a rise in annual investment from roughly $5–6 billion in previous years to current levels exceeding $14 billion.
ANPG Executive Administrator Alcides Andrade stated that the investment strategy prioritizes mature fields to secure short-term production while advancing a longer-term concession allocation plan approved in 2019.
Since then, approximately 65 new blocks have been awarded, with additional negotiations underway. Authorities expect more than 70 blocks to be allocated by the end of the current licensing cycle.
Expansion Into Inland Basins
Beyond offshore development, Angola is intensifying exploration in inland sedimentary basins. ANPG Executive Administrator Ana Miala confirmed that geological studies are ongoing in the Etosha/Okavango and Cassanje basins, covering areas in the provinces of Cuando Cubango, Bié, Cunene and Malanje.
Preliminary assessments suggest that prospective resources under evaluation exceed one billion barrels of oil. Officials view inland exploration as a strategic component of post-2030 production planning, aimed at offsetting offshore decline and diversifying the country’s hydrocarbon base.
As Angola approaches the next decade, sustaining output above one million barrels per day will depend on continued investment, effective reservoir management, competitive fiscal terms and successful exploration in both mature and frontier basins.
