Angola represents strategic opportunity for US investors

Mar12,2024
Angola represents strategic opportunity for US investorsAngola represents strategic opportunity for US investors

While Angola represents one of the biggest oil producers in Africa, efforts to increase production to 1.18 million barrels per day (bpd) in 2024 have created newfound investment opportunities for global players. U.S. companies and investors, in particular, offer the capital and expertise required to strengthen the Angolan oil and gas market.

Reaffirming U.S. commitment towards energy development and economic prosperity in Angola, a networking event will be held in Houston on March 19 to showcase investment opportunities across the country’s rapidly expanding hydrocarbon industry. Hosted by the nation’s premier event for the hydrocarbon industry – Angola Oil & Gas (AOG) 2024 – in collaboration with the country’s national concessionaire and regulator, the National Oil, Gas & Biofuels Agency (ANPG), and the Ministry of Mineral Resources, Petroleum and Gas, the event offers networking opportunities for U.S. players in Angola.

The event comes on the heels of U.S. Secretary of State Anthony Blinken’s visit to Luanda in January 2024 where he discussed bilateral relations and partnerships in the areas of infrastructure, energy, economic engagement and trade. In October 2023, the U.S. also signed a seven-side MoU with the African Development Bank, the Africa Finance Corporation, the EU and the governments of the DRC, Zambia and Angola for the Lobito Corridor. The project links the Copperbelt in southern Africa to the Atlantic Coast for the purpose of driving mineral development and international trade.

AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; the national oil company Sonangol, the ANPG, the African Energy Chamber; and the Petroleum Derivatives Regulatory Institute, the event is a platform to sign deals and advance Angola’s oil and gas industry.

Spearheaded by Diamantino Azevedo, Angola’s Minister of Mineral Resources, Petroleum and Gas, and José Barroso, Secretary of State for Oil and Gas, Angola is committed to inviting U.S. and global E&P companies to invest in exploration and production in the country’s frontier basins. The country offers investment prospects in both on- and offshore oil as well as emerging opportunities in gas exploration and LNG, with Angola having concluded its most recent licensing round in January 2024.

Led by the ANPG, the licensing round featured a 12-block tender for blocks in the Lower Congo and Kwanza basins, with the next round scheduled for 2025. With proven oil and gas resources estimated at nine billion barrels of oil and 11 trillion cubic feet of natural gas, respectively, the country boasts immense opportunities for U.S. investors. As such, speakers during the Houston networking event are expected to highlight the significant opportunities Angola’s oil and gas sector continues to offer to investors across the entire value chain.

In 2022, the U.S.’s FDI in Angolan stock totaled $255 million, showcasing an increase of 53.1% from 2021 and highlighting strong investor confidence in the country’s market. Going forward, this confidence is expected to lead to heightened U.S. involvement in Angolan oil and gas, and recent exploratory success has demonstrated that opportunities are only growing in the market.

Positive drilling results from the KON-11 block in the Kwanza basin by energy company Corcel indicated a strong return of onshore oil production in Angola while a discovery in the Bavuza South-1 well in offshore Block 15 by energy supermajor ExxonMobil strengthens the country’s burgeoning exploration sector. As new basins are opened and the investment climate becomes even more attractive, U.S. oil and gas companies are encouraged to seize the opportunities the Angolan market presents.

Taking place from 17:00-20:00, the Houston networking event also serves as a form of prelude for the AOG 2024 conference. Organized by Energy Capital & Power, AOG 2024 will introduce U.S. investors and projects developers to upcoming opportunities in exploration and production.

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