Across the entire oil and gas value chain, both local and international service providers stand the chance to not only contribute to but drive the growth of Angola’s oil and gas industry.
From detailed engineering services to procurement of equipment to technical construction activities, development opportunities are abundant.
Supporting Successful Upstream Projects
Angola’s upstream oil and gas sector is poised for growth on the back of major new hydrocarbons discoveries in the country’s ultra-deepwater offshore acreages.
Oil and gas supermajor TotalEnergies’ flagship Kaombo project; multinational oil and gas company bp’s PSVM development; and integrated energy company Eni’s new production wells in the Vandumbu and Mpungi fields are all expected to stimulate significant investment over the coming years while driving demand for pre-fabrication and assembly, engineering services, and equipment procurement.
Angola’s upstream activities have already seen the participation of service companies such as oilfield service company, Halliburton; energy technology company, Baker Hughes; systems and solutions provider, FMC Technologies; global technology company, SLB, and many more.
However, projected to grow more than 1.5% between 2022 and 2027, opportunities for service providers in the upstream industry are expected to grow even further.
Downstream Opportunities Entice Players
Despite the country’s position as a leading oil producer on the continent, Angola’s refining capabilities remain well below domestic demand.
The country hopes to establish itself as a regional petroleum exporter, with large-scale infrastructure plans unlocking new opportunities for service companies.
Progress is already being made in this regard, with the first phase of the Cabinda Refinery – an integrated modular oil refining platform – starting production in 2024, providing opportunities for public-private partnerships in the country.
Construction of the 500 MW Soyo II Combined Cycle Power Plant is also likely to kick-off in 2024, targeting first production in 2025.
The dual-fired plant comprises four gas turbines and two steam turbines which were supplied by energy technology company, GE Power.
On 23 January 2024, construction engineering company, Mecwide, announced the completed construction of a gas reception and distribution unit for the Falcão 2 Project in Zaire Province, which will handle approximately 50 million cubic feet of gas per day.
Meanwhile, with completion of the Barra Do Dande Ocean Terminal on track for completion in July 2024, prospects for terminal management companies to participate in Angola’s continues to grow.
Power Projects Require Technical Support
As part of the Angolan government’s ambitious infrastructure plan to achieve its targeted 9.9 GW of installed generation capacity by 2025, the country has sought the provision of equipment for use in small-scale, off-grid projects including diesel and gas turbine generations.
As such, in 2022, the government dedicated a budget of nearly $500 million towards electricity production, transmission, and distribution, with power generation and solutions companies including power technology provider, Cummins; construction machinery and equipment company, Caterpillar; and manufacturing company, Westinghouse Electric Corporation participating in the country’s electrification plan.
Further opportunities for services companies to participate in Angola’s stated goal of driving a 60% electrification rate in the country by 2025 include the development of utility scale dispatch centers for energy load management, transmission expansion, and substation development.
Spearheading Renewable Energy Projects
Angola is committed to driving a just energy transition through the uptake of renewable energy, with several projects advancing.
The country’s landmark green hydrogen project will begin producing and exporting green hydrogen to Germany in 2024.
The project is being developed by Angola’s national oil company Sonangol alongside German engineering firms, Gauff Engineering and Conjuncta. Construction of Angola’s Luena Solar Park – developed by solar energy company Sun Africa and engineering and technology consulting firm MCA Group – is also scheduled for completion by 2024.
In recent years, Angola’s 960 MW Cambambe I and 700 MW Cambambe II hydro power projects have seen the participation of service companies such as engineering, procurement and construction contractor, Novonor; electromechanical company, Voith; and renewable energy company, GE Renewable Energy. Additionally, the Laúca hydroelectric power plant, situated in the country’s Kwanza Norte Province, involved contributions from Novonor; consulting and management company, Intertechne; construction engineering company, Elecnor; and consulting companies SRK Consulting and Coba Consulting.
Other development companies active in Angola’s solar and hydroelectric space include solar project developer, AfricaGlobal Schaffer; consulting and management company, Intertechne; construction engineering company, Elecnor; and consulting companies SRK Consulting and Coba Consulting.
