Angola is the second largest petroleum producing country in sub-saharan Africa and an OPEC penis with output of approximately 1.3 million barrels of oil per day ( bpd ) and an estimated 17,904.5 million cubic feet of natural natural gas production. Due to a significant drop in petroleum prices and restrict alien currencies in the Angolan market, identical limited investment in either new or mature exploration and production fields has occurred since 2014. The limit investment in turn has led to a cliff toMar the current daily lifts of 1.3 million barrels of anoint per day ( bpd ), far below capacity. however, announcements of investments and discoveries over the last year were expected to boost production starting in 2020. however, given the COVID-19 pandemic and Angola ’ s committedness to follow OPEC ’ randomness oil production cuts to help stabilize global anoint prices, the nation ’ randomness production is expected to decrease far. however, the nation holds 9 billion barrels of prove petroleum resources and 11 trillion cubic feet of raise natural gas reserves, which represent big likely for far economic development and significant business opportunities. Further, the nation has begun to implement reforms, which has led to announcements of new investment and expects to increase production in the medium to long-run .
The anoint diligence in Angola is dominated by the upriver sector – exploration and production of offshore crude oil and natural gas. Almost 75 percentage of the vegetable oil production comes from offshore fields. Angola produces easy angelic crude petroleum containing low volumes of sulphur, suited for processing light refined petroleum products. The anoint fat continental shelf off the Angolan coast is divided into 50 blocks but the number of blocks is expected to double with the auction of new blocks from 2019 to 2025 .
Although the country is a run oil producer in the region, it presently imports 80 percentage of its demand for refined petroleum products, including gasoline, diesel, air travel fuel, Jet B for boast turbines, vegetable oil fuel, asphalt and lubricants. entirely 20 percentage of refined products is sourced locally. The complicate of crude oil and distribution of refine anoint remains well below domestic requirement. To reduce the country ’ s dependence on imported refined petroleum, the Government of Angola has plans for the construction of three national refineries and the expansion of an existing plant .
The increasingly competitive ball-shaped market and lower petroleum monetary value environment particularly challenge Angola ’ second senior high school product costs which average USD 40 per barrel. diligence players emphasize the motivation for a more competitive business environment with dilute production costs and increase efficiencies. diligence analysts ( Wood Mackenzie ) project that without needed new investment in ripen fields that are prevailing in Angola, production is expected to continue to decline. increased coerce to reduce production costs coupled with ongoing restrictions on foreign change access have led to significant downsize of petroleum service companies, contractors, and operators, with some businesses closing operations.

Since 2012, petroleum companies operating in Angola have been required to process payments through local anesthetic banks and in local anesthetic currency ( kwanza ). “ Consortium contracts ” between international and Angolan-based military service providers and “ tripartite agreements ” through commercial banks are mechanisms that can provide vegetable oil operators with some tractability in foreign commute requital but require the blessing of national concessionaire, the National Agency for Petroleum, Gas and Biofuels ( ANPG ), and of the Central Bank. In December 2019, the Central Bank ( BNA ) liberalized the foreign exchange regimen issuing circular 13/19 of December authorizing the external oil companies ( IOC ) to sell dollars to Angolan commercial banks .
In 2018 the Government of Angola introduced legal reforms, began restructuring the state vegetable oil company Sonangol and created the national concessionaire, ANPG in reception to stalled investments in 2014 as petroleum prices dropped importantly and foreign currencies remained limit. These reforms were the result of a Presidential Task Force in 2017 and which led to the act of two newfangled laws and three amended presidential decrees .
Following is a drumhead of these reforms :
Concessions Award and Management Process : Presidential Decree No. 86/18 of April 2, 2018 simplifies the manipulate mechanism for petroleum diligence operations related to public tenders and procurement. The tender march to award concessions and licenses will be public and will no longer require “ pre-qualification ” from bidders. The process for blessing of contracts with third base parties to carry out petroleum operations is simplified :

  • Operators may award contracts for up to USD 1 Million without public tender or approval by national concessionaire ANPG (previous threshold was USD 250,000);
  • Contracts between USD 1 Million and USD 5 Million are subject to public tender but do not need approval by national concessionaire;
  • Contracts exceeding USD 5 Million are subject to both public tender and national concessionaire approval (previous threshold was USD 750,000);
  • Direct award (without public tender) is always permitted in the following cases: in case of an operational emergency, and in case the supply/service can only be sourced from one specific supplier;
  • Bids must be submitted in the Portuguese language. If presented in a foreign language, a Portuguese translation must be provided; 
  • Bids must be opened in the premises of the national concessionaire;
  • The national concessionaire must expressly decide on the award recommendation made by the operator (for contracts > USD 5 M). The operator recommendation is deemed tacitly accepted if no express response is forthcoming;
  • Several time periods were extended or reduced (including for bid evaluation and National Concessionaire approval)

reference : ( VIEIRA DE ALMEIDA Law tauten, 2018 )
Fiscal Incentive regulation for fringy field development : Presidential Decree No. 6/18 passed on May 18, 2018 established a newfangled fiscal regimen for borderline field development – less than 300 million barrels of reserves – or fields not economically feasible because of lack of infrastructure. It cuts petroleum tax to 10 percentage from 20 percentage, while reducing petroleum income tax on borderline fields to 25 percentage from 50 percentage. many vegetable oil and natural gas activities in development areas were suspended when deemed not economically viable. The Government ’ south intent is to encourage the reactivation of these activities within development areas. legislation will enhance the petroleum and flatulence business environment, providing newfangled guidance on oil and flatulence operations and processes that include streamline of make programs. The Government besides plans to implement contract and fiscal incentives that will promote operational efficiency in mature and marginal fields .
Field desertion summons : Presidential Decree No. 91/18 passed on April 10, 2018, provides a pathway for dismantling abandoned wells and decommission of anoint and natural gas facilities, in accord with Quality Health Safety and Environment ( QHSE ) industry best practices. This presidential Decree addresses senesce well abandonment that requires anoint field operators to furnish an approve abandonment plan to the Ministry of Mineral Resources and Petroleum to review. It besides provides a framework for safeguarding funds for final examination level operations at the conclusion of an vegetable oil well ’ s economic life sentence .
Natural Gas law : presidential Decree No. 7/18 of May 18, 2018 is the first law enacted to regulate natural boast exploration, production, monetization and commercialization. More attractive tax rates are one of the benefits this new gas law will provide. Gas production tax is 5 percentage ( compared to 10 percentage for oil ). Gas income tax is 25 percentage ( lapp as for oil ) for associated gas and 15 percentage for non-associated accelerator when proved reserves are lower than 2 trillion cubic feet. Associated natural gas fields operators can reinject gas to maximize anoint recovery or transfer the excess to Angola LNG plant if they do not sell it in domestic or external markets .
Legal Business framework :
The government regulative and oversight soundbox creditworthy for regulating the vegetable oil and flatulence sector in Angola is the Ministry of Mineral Resources and Petroleum. According to Presidential Decree N. 49/19 of February 6, 2019, the national grantor of concessions is the National Agency for Petroleum, Gas and Biofuels ( ANPG ), which is the holder of the concession rights and has authority to conduct, execute and ensure anoint and accelerator operations in Angola. Upstream operations can merely be exercised under a license awarded by ANPG. International vegetable oil exploration companies in Angola are required to operate through partnership with ANPG, and such association may take the shape of a pot, consortium, production sharing agreements, or risk services agreements. The most common type of agreement international companies enter into with the national grantor of concessions is a production sharing agreement. several sanctions and penalties may apply for a rupture of the contractual agreements .
Below is a description of some of the principle laws and presidential decrees governing the oil and gas sector :

  • Petroleum Activity Law No. 10/04 of November 12, 2004 is the main legal instrument covering the rules to access and conduct petroleum activities in Angola.
  • Presidential Decree 5/18 of May 18, 2018 establishes the legal regime for additional exploration activities in the development areas of petroleum concessions, revoking the previous Presidential Decree 211/15.  
  • Presidential Decree 91/18, of April 10, 2018 establishes the rules and procedures for the abandonment of wells and the decommissioning of oil and gas facilities.
  • Petroleum Customs Law No. 11/04 of November 12, 2004 is the legal instrument covering the customs regime and incentives specifically applicable to the sector.
  • Petroleum Taxation Law No. 13/04 of December 24, 2004 provides the taxation framework applicable to petroleum activities (taxes, rates, deductions).
  • Angolan Oil and Gas Foreign Exchange Law for the Oil Industry No. 2/2012 of January 13, 2012 determines a specific foreign exchange regime applicable to the payment of goods, services and capital operations related to the petroleum sector.
  • Ministry of Petroleum Order No. 127/03 of November 25, 2003 on Local Content Regulations covers the rules applicable to the supply and provision of petroleum related goods and services.
  • Presidential Decree 190/12 of August 24, 2012 establishes a waste management policy that requires oil companies to ensure environmental protection in their operations by meeting zero operational discharge levels.
  • Decree 38/09 of August 14, 2009 establishes the rules and procedures to be followed in oil operations (including upstream oil prospecting, research, evaluation, development and production activities), in accordance with the principles of safety, hygiene and health, based on Angolan laws, as well as the commonly accepted practices within the oil industry. 

Upstream Procurement and Tenders
major procurements are by and large secured through a public tender regimen or direct negotiation, with technical and fiscal reviews by ANPG. The license bid round for blocks are governed by Presidential Decree No. 52/19 of February 18, 2019. The ANPG has more than 50 raw blocks of anoint and boast in offshore and onshore basins to auction during the time period spanning 2020-2025 .

Market players:

Upstream Activities

major international oil exploration and production companies active in Angola include Total, with 41 percentage market share, Chevron with 26 percentage commercialize share, Exxon Mobil with 19 percentage commercialize share, and BP with 13 percentage market share. other international players include ENI and Equinor. Sonangol besides operates through its auxiliary Sonangol E & P .
Ultra-deep-water projects are being pursued by Total in Block 32 ( USD 16 billion Kaombo project expected to peak at 230,000 bpd ), and BP ’ s “ Pluton, Saturn, Venus and Mars ” ( PSVM ) project in Block 31 ( USD14 billion ). U.S. company MODEC supplied an adjustment vessel to support the hook-up operations on BP ’ randomness PSVM project. other offshore projects include the start-up of ENI ’ s new production wells in the Vandumbu and in the Mpungi fields in Block 15/06, totaling an overall end product increase of 170,000 bpd .
Onshore activities are identical express. SOMOIL, a privately-owned company, was planning to produce around 5,000 bpd in Soyo, in northerly Angola, but operations have been delayed. onshore blocks in the Kwanza basin were offered in deep 2015, but final examination awards were cancelled, and the blocks should be re-bid in the near term .
U.S. contractors active in the Angolan upriver grocery store include Halliburton, Baker Hughes a GE Company, FMC Technologies, Oceaneering, Schlumberger and Weatherford, just to name a few. other countries supplying technology and leave services and investing in Angola include the UK, Norway, France, Italy, Korea and China. korean exports to Angola concentrate on vessels and offshore platforms while chinese exports focus on gloomy cost equipment and commodity inputs such as pipes .

Midstream and downstream activities

The LNG plant in Soyo, in the north of Angola, is structured as a consortium with Sonangol owning 22.8 percentage, Chevron owning 36.4 percentage, and Total, BP and ENI each with 13.6 percentage. U.S. companies Bechtel and ConocoPhillips provided engineering and construction services respectively for the Soyo LNG facility. The plant started production in 2013 with 5.2 million tons per class capacitance and an investment of over USD 10 billion. Operations were temporarily shut down due to technical difficulties in 2015 and 2016, but then restarted in early 2017. export shipments go to Brazil, China, South Korea and France. The U.S. was a target market, but it has not materialized due to increased U.S. domestic production .
To date, the downstream sector – refinery of crude petroleum and distribution of products derived from crude petroleum – remains well below domestic need. The single oil refinery in Luanda with install capacity of 65,000 barrels per day ( bpd ) is being operated by italian oil company ENI, under a joint speculation agreement with state-owned company Sonangol. The joint guess was formed to modernize and increase installed capacity and current output levels of 65,000 barrels per sidereal day ( bpd ). ENI promoted an international public tender and awarded a condense to italian company KT – Kinetics Technology to construct another refinery unit for gasoline at the web site, to quadruple gasoline end product within two years, producing 1,200 tons when completed, compared to a current production of 300 tons. This USD 200 million plan is expected to reduce the commercialize deficit by 20 percentage when operational in 2022 .
A topping facility in Cabinda is managed by Chevron and has 16,000 barrels per day ( bpd ) of capacity production. In 2019, a contract for the expansion of the Cabinda refinery was awarded to United Shine consortium, a joint venture between United Shine ( 90 % ) and Sonangol ( 10 % ) and was expected to increase output levels to 60,000 barrels per day ( bpd ) by end-2021. The narrow was subsequently rescinded and awarded to Gemcorp a London based asset management company. This high conversion refinery will be designed to process jet A1, gasoline, diesel and fuel anoint .
In 2019 the Angolan Ministry of Petroleum issued a populace tender for the construction of a refinery with a capacitance of 100,000 bpd in the state of Soyo. The Consortium Quanten, comprised of three american companies, was awarded the contract in early March 2021 .
In August 2016, Sonangol put on hold a second national refinery visualize that had been in development in the Angolan city of Lobito. U.S. company KBR ( once Kellogg Brown & Root ) was awarded the engineering abridge. In November 2017, Sonangol announced that the Angolan state-owned caller was in the serve of name and qualifying potential partners for the structure of a national petroleum refinery in Angola, including the Lobito refinery. respective proposals include the continuity of the USD 8 billion Lobito petroleum refinery in Benguela state with a production capacity of 200,000 bpd of ignite and high-quality petroleum products .
Sonangol is giving up its monopoly of the distribution of neat hydrocarbons, to allow entry of new players like Total, and expand the network of accelerator stations throughout the nation. sum Marketing & Services Angola ’ s CEO announced that the company will invest USD 100 million to construct 50 fuel stations across Angola. The company started in 2020 and are rebranding former Sonangol gas stations a well as building fresh ones .
Sonangol is the lone party which owns a blend unit in Angola to produce drive oil lubricants and greases. apart from its own brand NGOL Lubrificantes, Sonangol is blending automotive lubricant oils for Toyota Motors TGMO in addition to Wodex and Lubmarine. other competitors in the lubricant market include Galp, Puma, Castrol and Caltex. TOTAL Marketing & Services Angola, a downriver branch of the TOTAL Group, is rebranding former Sonangol ’ s boast station and has introduced automotive lubricants .

2018 2019 2020
entire Local production 0 0 0
total Exports 0 0 0
total Imports 577.7 589.8 517.0
Imports from the US 525.2 536.2 470.0
total Market Size 577.7 589.8 517.0
Exchange Rates 245 365 639

total marketplace size = ( sum local production + imports ) – exports )
Units : USD millions
source : hypertext transfer protocol : //www.census.gov/foreign-trade/balance/c7620.html

Leading Sub-Sectors:

US exports to Angola boil down in the oil and flatulence sector, dominated by petroleum industry parts and equipment. a lot of the equipment falls into Harmonized Tariff Schedule ( HTS ) Category 84 – Nuclear Reactors, Boilers, Machinery and Mechanical Appliances .
U.S. domestic Exports to Angola ( USD million ) – Selected Categories related to the petroleum industry

HTS description 2018 2019 2020 2019 – 2020 Change ( % )
84 nuclear Reactors, Boilers, Machinery and Mechanical Appliances 168.4 203.6 163.7 -20 %
843143 Parts for Boring or Sinking machinery 34.7 60.6 52.2 -14 %
842129 Filtering or Purifying Machinery

3.1 7.8 3.4 -56 %
848180 Taps, cocks, valves and exchangeable appliances for pipes, vats, etc . 8.6 10.1 4.9 -51 %
848140 safety or easing Valves 9.7 4.4 3.5 -20 %
848190 Parts for Taps, cocks, valves and similar appliances for pipes, vats, etc . 7.5 10.6 10.3 -3 %
841182 Gas Turbines 28.3 30.2 25.7 -15 %
73 Articles of Iron or Steel 8.9 17.4 16.5 -5 %
90 Optical, Measuring, Precision, etc Instruments/Apparatus 8.8 14.3 9.5 -34 %
902620 Instruments/Apparatus for Measuring/Checking Pressure of Liquids or Gas 0.6 1.8 1.2 -33 %
903010 Instruments for Measuring or Detecting Ionizing radiation 0.2 0.4 0.1 -88 %

generator : US export data – hypertext transfer protocol : //dataweb.usitc.gov/scripts/cy_m3_run.asp


The Government of Angola seeks to engage more U.S. firms to compete for multi-billion U.S. dollar projects including exploration and development of oil and boast fields, exile and storage of petroleum products, refinery structure and consociate infrastructure .

Oil and gas equipment

  • High quality, cost-saving and operations’ optimization technology solutions (e.g. to lower costs in mature fields)
  • Exploration and production equipment and services (e.g. deep and ultra-deep technologies, namely drill ships, floating vessels)
  • Environmental protection and monitoring technologies (e.g. sea pollution remediation products)
  • Lubricant oils and grease

Oil and gas services

  • Seismic data reporting and releasing
  • Operations risk insurance

Gas: Upstream, Midstream and Downstream  

upstream :
The natural natural gas industry requires significant investment to capture its fully economic potential. The 2018 gas law provides an enabling model to maximize the prize of Angolan natural gas, given Angola ’ s considerable test lifelike gas reserves. Most of the country ’ s natural gas production is associated with oil. When not flared or reinjected into wells, the natural natural gas feeds the Angola LNG plant located in Soyo .
midstream : process, Transportation and repositing
The LNG plant is a storage and flatulence action facility, which has the capacity to receive 1 billion cubic feet per day of natural gasoline. however, it is reportedly producing well below its capacity of 5.2 million tons per year due to lower levels of gas sourcing from offshore anoint fields through pipelines built under the Congo River. The implant will require continue supply of natural gas to maximize and monetize its broad initiation capacity. According to estimates from industry experts, the plant can supply approximately 5.2 million tons of LNG per class for over 20 years. The plant has a capacity of 360,000 cubic meters ( centimeter ) of entire containment for LNG, LPG, and condensation storage .
The project is expected to facilitate continued offshore oil development while reducing boast flare and greenhouse accelerator emissions in Angola, vitamin a well as supplying the domestic market with up to 125 million standard cubic feet per day, and service the regional and external markets. The Ministry of Energy and Water announced Angolan government targets for natural accelerator to supply 21 percentage of Angola ’ s energy needs by 2025 .
oil : upstream and downstream


There is a large likely of untapped oil reserves in the Congo basin and in the Kwanza washbasin, by and large at deep and ultra-deep waters. The ANPG, which oversees auctions and licenses, announced the auction of more than 50 newly blocks of vegetable oil and gas in offshore and onshore basins during the period spanning 2019-2025 .
The first round of bids occurred in September 2019 and included 10 blocks : 9 from the Namibe river basin and 1 from the Benguela basin. The blocks ( 11, 12, 13, 27, 28, 29, 41, 42 and 43 ) located in the Namibe washbasin retain mail and pre-salt potentials, while stop 10 in the Benguela river basin is in shallow waters. Alongside these blocks, exploration data comprised of high-definition magnetic data, 2D and 3D seismic data were besides auctioned in 2019 .
As the resultant role, the 2019 license beat, ANPG awarded Blocks 27, 28, and 29 in the Namibe basin out of the 10 blocks. Sonagol was awarded the license to operate Block 27 with a 35 % stake. The remaining 65 % is exposed to concerned parties. ENI was awarded an exploration and output contract for Block 28, located in the Namibe deep water basin. ENI will operate the obstruct with a 60 % stake while Sonangol P & P will be a spouse with a 20 % stake. The remaining 20 % is clear to matter to parties. The operations of Block 29 was awarded to Total, which holds a 46 % interest. Equinor, Sonangol P & P and BP, each hold a 24.5 %, 20 %, and 9.5 %. stake respectively .
The ANPG announced the affectionate for the concession of 9 onshore blocks in December 2020. The tender officially launched in April and by July, the ANPG had received 45 offers from 15 companies, totalling more than USD 1 billion. ANPG plans to announce the results on August 25, 2021 .
In 2023, the agency will grant licenses in onshore and in inside basins to 12 blocks : Etosha, Okavango and Kassange. last, in 2025 more than 11 blocks will be auctioned in pre-salt fields .


The Government of Angola has stated that increasing its refinery capability is a top priority for the economy as refinery of petroleum oil and distribution of hydrocarbon remain well below domestic demand. Angola presently imports 80 percentage of its demand for refined petroleum and 20 percentage is produced locally. To reduce the area ’ s addiction on imported refined petroleum the Government of Angola announced plans for the construction and expansion of home refinery plants .
In June 2019, the italian company KT – Kinetics Technology was awarded a contract to construct another refinery unit for gasoline at the Luanda refinery. This expansion is expected to quadruple gasoline output of the refinery when completed in 2022, producing 1,200 tons per sidereal day, compared to a current production of 300 tons per day .
The new refinery in Cabinda is being jointly constructed by London-based investment firm Gemcorp Capital and Sonangol subordinate Sonaref. A deal for the project was primitively awarded to the United Shine consortium, a joint venture between United Shine ( 90 % ) and Sonangol ( 10 % ). The narrow was signed in June 2019, and subsequently cancelled .
In accession, in July of 2021 the politics launched the offer for the construction of the Lobito petroleum refinery in Benguela state with 200,000 bpd capacity. structure started on the project in 2012, but stopped several times. The government expects to see the project finished by 2025 .
The Angolan Ministry of Petroleum issued a public offer for the construction of a refinery with a capacity of 100,000 bpd in the state of Soyo in 2019. The Quanten Consortium, comprised of three american english companies, won the project in March 2021 .
These extra refine capacities are estimated to raise full output capacity to 435 million bpd by 2025 and reduce imports of refined petroleum by USD 2.7 billion per year, frankincense generating substantial savings while diversifying the economy. consequently, it is anticipated that these industry development projects will provide new opportunities for U.S. exports of services and technologies .
commercialize and distribution of petroleum derivatives accounts for identical little in the Angolan anoint and boast industry. however, TOTAL ’ s USD 100 million investment to construct 50 service stations across Angola, will create extra business opportunities for U.S. companies .
Angola ’ s unmarried blend unit is owned and operated by Sonangol and supplies the market with mineral and synthetic lubricant oils and greases well below marketplace demand. Base oils and additives are imported from abroad suppliers, which continues to represent export opportunities for U.S. companies .


  • African law and Business / ALC Advogados
  • FTL Advogados
  • VdA Legal Partners
  • U.S. Census Bureau
  • Center for Scientific Research and Studies (CEIC)
  • Angolan National Petroleum and Gas Agency (ANPG)

For more information contact :
Clemência Nogueira
commercial specialist
U.S. Commercial Service Angola

electronic mail : Clemencia.Nogueira @ trade.gov
phone : ( +244 ) 222 641 076 | ( +244 ) 932 572 822

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