Angola Oil Discovery Promises Lower Fuel Prices Across Southern Africa

Angola’s oil industry is on the verge of a transformation as the country prepares for its 2025 oil and gas licensing round.

This follows a series of strategic moves aimed at revitalizing the sector, which had seen limited growth for decades.

In January 2024, Angola offered 12 blocks in the Lower Congo and Kwanza Basins, attracting 53 bids from various companies.

This level of interest underscores the strong potential of Angola’s hydrocarbon resources and reflects growing investor confidence.

The upcoming licensing round will feature nine offshore blocks in the Kwanza Basin and four onshore blocks, aligning with Angola’s broader strategy to attract foreign investment and stimulate economic growth.

The government aims to boost oil production while maintaining a stable output of over one million barrels per day beyond 2027.

In addition, Angola is diversifying its energy mix, exploring renewable energy and green hydrogen to ensure long-term sustainability.

Recent key developments in Angola’s oil sector reflect a renewed commitment to industry growth.

TotalEnergies, a major player, announced a final investment decision for the Kaminho deepwater project in May 2024.

The $6 billion project is expected to significantly enhance Angola’s oil production capacity, reinforcing its status as a top African oil producer.

Additionally, TotalEnergies continues advancing projects such as the Begonia oil field, which will further bolster the country’s output.

International oil companies are ramping up exploration, leading to significant discoveries.

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For example, ExxonMobil and its partners recently struck oil at the Likembe-01 well in Block 15, marking a key milestone under Angola’s Incremental Production Program.

This initiative is designed to increase production from existing blocks while offering investors attractive fiscal terms.

To support production growth, Angola is expanding its oil and gas infrastructure.

Two major refineries are currently under development: the Lobito Refinery, with a capacity of 200,000 barrels per day, and the Cabinda Refinery, expected to process 30,000 barrels per day upon completion.

The Cabinda Refinery is set to begin operations in July 2025, further enhancing Angola’s refining capacity.

With the 2025 licensing round approaching, the government’s proactive approach—through competitive tenders and strategic partnerships with international oil companies—is expected to drive further investment and increase production.

Industry experts believe Angola’s model could serve as a blueprint for other African nations aiming to strengthen their energy sectors.

Angola is at a turning point in its oil industry journey.

With major investments on the horizon and ongoing developments across multiple projects, the country is well-positioned to reaffirm its role as a leading oil producer in Africa.

As Angola navigates this crucial phase, transparent governance and strategic resource management will be essential to ensure that all Angolans benefit from the industry’s resurgence.

The next few years will be critical as Angola maximizes its hydrocarbon potential while expanding its clean energy portfolio for sustainable growth.