Angola has room for more investors in oil sector

  • President of Republic João Lourenço
Luanda – Angolan President, João Lourenço, said this Wednesday in Luanda that, in Angola, there is room for investors, mainly in free areas and in new exploration zones in sedimentary basins, where it is necessary to quantify the potential of hydrocarbon resources.

Speaking in the videoconference on the first day of the plenary session of the IV International Forum “Russian Energy Week”, taking place in Moscow, Russian Federation, João Lourenço recalled that Angola has restructured its oil sector. 

 

In this regard, he said that the National Agency of Petroleum, Gas and Biofuels (ANPG) was created, as a concessionaire and regulator of the "upstream", and the Regulatory Institute of Petroleum Byproducts (IRDP), with the function of regulator of the "mid-downstream". 

 

President Lourenço said that Sonangol now focuses on activities in the oil sector value chain, that is, prospecting, research, evaluation, development and production of crude oil and natural gas, refining, transport, storage, distribution and marketing of  oil derivatives products . 

 

Angola currently produces around 1.3 billion barrels of oil per day and 2.7 billion cubic feet of natural gas per day. 

 

João Lourenço stated that the activity of exploration and production of hydrocarbons has been essentially limited to crude oil. 

 

He also referred that, given the need to economically explore the country's natural gas potential, as well as the elimination of the respective flaring, the project to build the Angola LNG factory was implemented, a partnership among  Sonangol, Chevron, BP, Eni and Total , aiming for the production of liquefied natural gas. 

 

The project, according to the Angolan President, aims at the efficient use of gaseous hydrocarbon deposits, as well as promoting the diversification of the Angolan economy. 

 

President Lourenço said that actions are underway to implement the New Gas Consortium, which aims to develop non-associated gas with a view to allowing the continuous supply of gas to the Angola LNG plant and, consequently, the supply of gas to Combined- Cycle Power Plant in Soyo and the fertilizer industry, within the scope of the diversification of the Angolan economy. 

 

The President considered that the development of the gas sector is an opportunity for Russian companies, taking into account the experience they have in this field, to contribute to the creation of steel mills, fertilizer factories, power generation and others.

 

"To complement and reinforce this strategy, the Government also approved the Regime of Permanent Offer of (oil exploration) blocks, an instrument aimed at the promotion and permanent negotiation of non-awarded blocks, free areas of concession blocks and concessions awarded to the national concessionaire, opening up here too, an opportunity for Russian companies,” he clarified. 

 

He underlined that with the aim of guaranteeing self-sufficiency in refined products, the Government is promoting the implementation of construction projects for three refineries, namely in Cabinda, Soyo and Lobito. 

 

With the construction of these refineries, he said, “Angola will have a refining capacity of around 425,000 barrels of crude oil per day”. 

 

“Here is an investment opportunity for Russian companies, in the construction of the Lobito refinery, since the international public tender for partnership is still taking place, which ends in October of this year”, he said. 

 

After noting that the oil industry is likely to generate greenhouse gas emissions that contribute to global warming, he advocated that the Angolan Government advises that all parties involved in the oil exploration and production activity adopt mitigation and compensation measures, such as improving the energy efficiency, the creation of forests or reforestation. 

 

João Lourenço highlighted the progress of the phenomenon of climate change and the growing concern for the environment, the energy transition to a low-carbon economy, which is currently a theme that configures the agenda of several countries. 

 

He stressed that Angola, like other countries, should develop a national strategy, aimed at the sustainable exploitation of its fossil energy resources, and gradually change the national energy matrix in the medium to long term. 

 

“With all these projects, the country will be able to create opportunities for the development of new renewable energy sources, such as solar, wind, biomass and others”, he noted. 

The Head of State emphasized the contribution that the Russian Federation has made in the technical training of Angolan staff for the oil sector, an area of ​​cooperation whose continuity is essential for the economic and social development of Angola. 

 

To him, Angola is committed to strengthening cooperation with the Russian Federation different areas and open to all companies that want to participate with their investments in the diversification and development of the Angolan economy. 

The IV International Forum "Russian Energy Week", which is ending  on Friday (15), addresses  relevant topics on the production of oil and gas in Russia and in countries producing hydrocarbons and fossil energy sources. 

 

Speaking in the videoconference on the first day of the plenary session of the IV International Forum “Russian Energy Week”, taking place in Moscow, Russian Federation, João Lourenço recalled that Angola has restructured its oil sector. 

 

In this regard, he said that the National Agency of Petroleum, Gas and Biofuels (ANPG) was created, as a concessionaire and regulator of the "upstream", and the Regulatory Institute of Petroleum Byproducts (IRDP), with the function of regulator of the "mid-downstream". 

 

President Lourenço said that Sonangol now focuses on activities in the oil sector value chain, that is, prospecting, research, evaluation, development and production of crude oil and natural gas, refining, transport, storage, distribution and marketing of  oil derivatives products . 

 

Angola currently produces around 1.3 billion barrels of oil per day and 2.7 billion cubic feet of natural gas per day. 

 

João Lourenço stated that the activity of exploration and production of hydrocarbons has been essentially limited to crude oil. 

 

He also referred that, given the need to economically explore the country's natural gas potential, as well as the elimination of the respective flaring, the project to build the Angola LNG factory was implemented, a partnership among  Sonangol, Chevron, BP, Eni and Total , aiming for the production of liquefied natural gas. 

 

The project, according to the Angolan President, aims at the efficient use of gaseous hydrocarbon deposits, as well as promoting the diversification of the Angolan economy. 

 

President Lourenço said that actions are underway to implement the New Gas Consortium, which aims to develop non-associated gas with a view to allowing the continuous supply of gas to the Angola LNG plant and, consequently, the supply of gas to Combined- Cycle Power Plant in Soyo and the fertilizer industry, within the scope of the diversification of the Angolan economy. 

 

The President considered that the development of the gas sector is an opportunity for Russian companies, taking into account the experience they have in this field, to contribute to the creation of steel mills, fertilizer factories, power generation and others.

 

"To complement and reinforce this strategy, the Government also approved the Regime of Permanent Offer of (oil exploration) blocks, an instrument aimed at the promotion and permanent negotiation of non-awarded blocks, free areas of concession blocks and concessions awarded to the national concessionaire, opening up here too, an opportunity for Russian companies,” he clarified. 

 

He underlined that with the aim of guaranteeing self-sufficiency in refined products, the Government is promoting the implementation of construction projects for three refineries, namely in Cabinda, Soyo and Lobito. 

 

With the construction of these refineries, he said, “Angola will have a refining capacity of around 425,000 barrels of crude oil per day”. 

 

“Here is an investment opportunity for Russian companies, in the construction of the Lobito refinery, since the international public tender for partnership is still taking place, which ends in October of this year”, he said. 

 

After noting that the oil industry is likely to generate greenhouse gas emissions that contribute to global warming, he advocated that the Angolan Government advises that all parties involved in the oil exploration and production activity adopt mitigation and compensation measures, such as improving the energy efficiency, the creation of forests or reforestation. 

 

João Lourenço highlighted the progress of the phenomenon of climate change and the growing concern for the environment, the energy transition to a low-carbon economy, which is currently a theme that configures the agenda of several countries. 

 

He stressed that Angola, like other countries, should develop a national strategy, aimed at the sustainable exploitation of its fossil energy resources, and gradually change the national energy matrix in the medium to long term. 

 

“With all these projects, the country will be able to create opportunities for the development of new renewable energy sources, such as solar, wind, biomass and others”, he noted. 

The Head of State emphasized the contribution that the Russian Federation has made in the technical training of Angolan staff for the oil sector, an area of ​​cooperation whose continuity is essential for the economic and social development of Angola. 

 

To him, Angola is committed to strengthening cooperation with the Russian Federation different areas and open to all companies that want to participate with their investments in the diversification and development of the Angolan economy. 

The IV International Forum "Russian Energy Week", which is ending  on Friday (15), addresses  relevant topics on the production of oil and gas in Russia and in countries producing hydrocarbons and fossil energy sources.