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Angola: Almost $50B Invested in Oil Sector in Last Five Years – Agency

Angola: Almost $50B Invested in Oil Sector in Last Five Years – Agency

Investment in Angola’s oil sector increased by 96% between 2022 and 2023, with investments of almost US$50 billion (€46.2 billion) recorded over the last five years, the country’s concessionaire announced on Monday.

The figures were announced at a press conference by the chairman of the board of the National Oil, Gas and Biofuels Agency (ANPG), Paulino Jerónimo, who marked five years of activity for the national concessionaire, which was created in 2019.

Over the next five years, investments of around US$71 billion (€65.6 billion) are planned, which does not include investment in incremental production, said Jerónimo, expressing his confidence that this project will double investments.

According to Paulino Jerónimo, this project is being discussed with the ministry of finance and its main objective is to incentivise companies that produce more than expected.

Below the production forecast, oil and profit will be shared according to the contract. And what is produced above will be shared according to the negotiation between the concessionaire and the operator.

The chairman of ANGP’s board of directors said that the country is currently producing 1.1 million barrels a day, a figure that would reach 1.2 million barrels of oil a day if it weren’t for the daily losses of 90,000 barrels of oil.

In the last five years, the country recorded unplanned production losses of around 170 million barrels of oil, due to the ageing of most of the concessions, designed to operate for between 15 and 20 years, some of which are already more than 60 years old.

“And our large oil fields, such as Girassol, Dalia, are already more than 20 years old and this means that the systems in these facilities have more failures, the failures are more recurrent. Regular preventive maintenance is no longer enough to mitigate these failures, it requires greater effort and investment,” said ANPG’s production director, Ana Rosa Miala.

Ana Rosa Miala pointed out that, with all the incentives being given in the sector, plant failures will reduce, with their rehabilitation by investors, and better supervision of operators’ work programmes, in line with international practices, based on the new technical regulations.

She emphasised that the goal remains production above 1.2 million barrels per day, with exploration work, tenders and new discoveries in the Namibe basin, the Kwanza and Benguela basins, as well as the Congo basin.

For 2024, 43 wells are scheduled to be drilled, six more than in 2023.

Paulino Jerónimo emphasised that in the last five years, two of which have been marked by the Covid-19 pandemic, which has been “a major challenge” for the agency, the sharp decline in production has been mitigated, tenders for new concessions have resumed, and conditions have been created to keep investors and bring in new ones.

“The balance is positive. When I spoke about the meeting between the country’s president and the oil operators, there was a period of despair, in which our business environment had deteriorated a lot. (…) I’ve been to meetings in which investors said they were going to suspend investments in Angola, the situation was really bad,” he said.

Lusa

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