This report focuses on the petroleum sector in Angola and includes comprehensive information on the country, its upstream and downstream oil sectors, developments and corporate actions and factors that influence the sector. There are profiles of nine companies including the four multinational operators that dominate the oil exploration and production market, Total, Chevron, ExxonMobil and BP. Other profiles include Sonangol, and smaller players such as Pumagol and Norwegian oil company Equinor, which is involved in the country through partnerships with other operators, including Sonangol.
The Petroleum Sector in Angola
Angola’s oil sector accounted for 29.4% of the country’s GDP in the fourth quarter of 2019 and it employs only about 1% of the country’s workforce. While oil remains Angola’s key export, oil production has been in decline since the oil price slump started in 2014. Since March 2020, when the country was hit hard by the coronavirus pandemic, the outlook for Africa’s second largest oil producer has worsened. Despite being a leading oil producer, Angola imports refined oil for its own energy needs. The Angolan government has plans to construct several national refineries to increase its refinery capacity.
Before the Angolan government announced emergency measures to tackle coronavirus, the Angolan National Petroleum and Gas Agency had revealed plans to auction 50 new oil and gas blocks between 2019 and 2025, and the first 10 were auctioned in 2019. The government has liberalised regulations in the downstream sector and aims to increase refining and land-based storage capacity, encourage the construction of new gas stations and review and possibly liberalise the regulatory regime in logistics and derivatives distribution. The government’s plan to sell state-owned Sonangol’s assets, including equity stakes in various private entities, might enable new players to enter the market more easily.