Angola Upstream Oil Industry Identified as Medium Risk for Money Laundering and Corruption, New ANPG Report Says
Angola’s upstream oil exploration and production sector carries multiple risks related to money laundering, corruption, and potential terrorist financing, according to a new regulatory study.
The report, the Sectoral Risk Assessment on Money Laundering, Terrorist Financing and Proliferation Financing in the Upstream Segment, was prepared by the National Agency of Petroleum, Gas and Biofuels (ANPG) with support from consultancy EY, covering the period between 2019 and 2023.
It concludes that the sector has a “medium-low” to “medium” overall vulnerability to financial crime.
Key risks identified
The study highlights 12 cross-cutting risks and 19 specific risks across all stages of upstream operations, from exploration and bidding to production and eventual well abandonment.
Among the most significant cross-cutting risks are corruption and conflicts of interest in supplier selection, contract negotiations, and procurement processes.
The report also points to risks of tax fraud, criminal associations linked to fund diversion, and potential money laundering in the capital structures of smaller operators and partners.
It further notes a potential risk of terrorist financing linked to financial support provided by operators to non-profit organisations.
Risks across operational phases
In the bidding phase alone, ten risks were identified, including fraud in proposal submissions, corruption and influence peddling during evaluation processes, and conflicts of interest in contract awards.
During exploration activities, the report highlights risks such as fraudulent environmental impact assessments and potential misuse of suppliers that could indirectly facilitate illicit financing.
In the development and production phase, risks include manipulation of cost allocations, environmental incidents such as oil spills, theft from onshore storage facilities, diversion of oil to informal markets, and internal stock mismanagement within contractor groups.
Additional risks were also identified in later stages, including corruption in sales contracts and fraud in well abandonment planning.
Overall risk level and recommendations
The report classifies the sector’s vulnerability to terrorist financing and weapons proliferation as “medium-low,” while the effectiveness of existing control measures is rated as “medium risk.”
To address these challenges, experts recommend stronger compliance systems, including mandatory and continuous training for oil sector employees, improved risk-based monitoring, and enhanced reporting of suspicious transactions.
The ANPG also urges closer coordination with industry operators and regulators to reinforce awareness of anti-money laundering rules and ensure stricter enforcement of penalties for non-compliance.
The findings highlight the need for stronger governance and oversight as Angola continues to expand and modernise its upstream oil sector.
