China National Offshore Oil Corporation (CNOOC) is dispatching a delegation of senior executives to Angola to explore investment prospects in oil exploration, aligning with Angola’s goal of ramping up production to 1.18 million barrels per day (bpd).
Despite a recent decline in exports, China is keen on enhancing investment in Angola’s exploration and production sector, reaffirming the long-standing energy ties between the two nations.
Angola, a major oil supplier to China in sub-Saharan Africa, has witnessed growing interest from Chinese investors following a state visit by Angolan President João Lourenço to Beijing in March 2024.
Chinese President Xi Jinping pledged support for Chinese companies investing in Angola, particularly in key infrastructure projects, signaling broader collaboration in energy and infrastructure development.
CNOOC’s engagement in discussions surrounding Angola’s Block 24 underscores the potential for bilateral cooperation in the upstream oil industry.
With Angola ranking as the second-largest destination for Chinese foreign investment, Chinese firms have poured nearly $14 billion into the country over the past decade, primarily in the energy sector.
Projects such as the Lobito Refinery construction, supported by China National Chemical Engineering, highlight the depth of collaboration between the two countries.
Moreover, Angola’s latest licensing round has attracted over 100 Chinese exploration and production firms, indicating sustained interest in Angola’s oil and gas prospects.
For China, investing in Angolan exploration offers a strategic avenue to diversify its energy sources and enhance energy security amid declining domestic oil output.
Angola, boasting significant oil reserves, stands to benefit from Chinese investment by revitalizing its oil production and bolstering infrastructure development across the value chain.
By tapping into Chinese capital and expertise, Angola aims to reverse its declining production trend and unlock untapped oil reserves both onshore and offshore, signaling a mutually beneficial partnership between the two nations.
