Report Coverage
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.
Introduction
While oil remains Angola’s key export, accounting for about 90% of its exports, 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.Oil production in Angola has slumped by a third in the past decade to less than 1.4 million barrels a day, reflecting years of underinvestment in new projects. The low oil price has led drilling operators to shift their focus to cutting costs and preserving cash flow. A number of projects have been delayed or suspended.Despite being a leading oil producer in sub-Saharan Africa, Angola imports up to 80%, or US$4bn, of refined oil to fulfil the country’s own energy needs. The Angolan government, however, has plans to construct several national refineries to increase its refinery capacity.
Strengths
• High level of training.
• Large amount of oil reserves.
• Number of technological advances used by oil operators.
• Well established oil sector.
Weaknesses
• Corruption.
• Lack of management and technical skills shortages.
• Limited access to credit by small operators.
• Weak infrastructure.
Opportunities
• Angola’s growing population will drive demand for oil and downstream services.
• Discovery of new oil finds.
• Increasing demand from developing countries for oil.
• The state’s liberalisation of the downstream sector and privatisation of Sonangol assets.
Threats
• High political risk.
• Low oil price, weak economic outlook given coronavirus and reliance on oil.
• The DRC’s claim on oil fields currently under Angola.
Outlook
The current outlook in Angola oil and gas sector, as in the sector globally, is grim. The oil price, which had already slumped for three years has since fallen through the floor with the onset of the coronavirus pandemic, which saw demand plummet.Oil analyst Anish Kapadia from Akap Energy believes with the low oil price, unattractive fiscal terms and the political risk being viewed as high by foreign companies, Angola will likely see production decline sharply over the coming years, by about 10% a year given mature fields and a lack of new developments that are planned. “There are new fields (he singles out Cameia and Chissonga) that could be brought on line but it will likely be middle of the 2020s at the earliest that these will see first production,” says Kapadia.The DRC’s claim on a portion of Angola’s offshore oil operations remains a distinct long-term threat. But it’s not clear how it would affect oil operators, should certain blocks be handed over to the DRC.
The Petroleum Industry in Angola
2020
Full Report
R 1 900.00(ZAR) estimated $101.31 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 70.92 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | COUNTRY INFORMATION | 1 |
| 3. | DESCRIPTION OF THE INDUSTRY | 3 |
| 3.1. | Geographic Position | 4 |
| 4. | SIZE OF THE INDUSTRY | 6 |
| 5. | STATE OF THE INDUSTRY | 9 |
| 5.1. | Local | 9 |
| 5.1.1. | Regulations | 13 |
| 5.1.2. | Enterprise Development and Social Economic Development | 15 |
| 5.2. | Continental | 15 |
| 5.3. | International | 17 |
| 6. | INFLUENCING FACTORS | 18 |
| 6.1. | Government Support | 18 |
| 6.2. | Economic environment | 20 |
| 6.3. | Technology, Research and Development (R&D) and Innovation | 20 |
| 6.4. | Labour | 21 |
| 6.5. | Social Projects | 21 |
| 6.6. | Environmental Impact | 22 |
| 6.7. | Marketing | 22 |
| 7. | COMPETITION | 23 |
| 7.1. | Barriers to Entry | 23 |
| 8. | SWOT ANALYSIS | 23 |
| 9. | OUTLOOK | 24 |
| 10. | INDUSTRY ASSOCIATIONS | 24 |
| 11. | REFERENCES | 25 |
| 11.1. | Publications | 25 |
| 11.2. | Websites | 25 |
| APPENDIX 1 | 27 | |
| Summary of Notable Players | 27 | |
| COMPANY PROFILES | 32 | |
| BP PLC | 32 | |
| CHEVRON CORPORATION | 39 | |
| ENI SPA | 45 | |
| EQUINOR ASA | 54 | |
| EXXON MOBIL CORPORATION | 60 | |
| GALP ENERGIA SGPS S.A. | 69 | |
| PUMANGOL LDA | 74 | |
| SOCIEDADE NACIONAL DE COMBUSTIVEIS DE ANGOLA E.P. | 76 | |
| TOTAL E&P ANGOLA | 80 |
