Angola's Oil & Gas Landscape: Africa's Second-Largest Producer
Angola is Africa's second-largest crude oil producer after Nigeria, with output of approximately 1.1 million barrels per day (bpd) in 2025-2026. The country holds an estimated 7.8 billion barrels of proven oil reserves, concentrated in prolific deepwater and ultra-deepwater basins off the Atlantic coast. Petroleum is the backbone of Angola's economy — accounting for approximately 95% of export revenues, 60% of government fiscal revenue, and roughly 30% of GDP. The sector's performance directly determines the country's fiscal balance, currency stability, and capacity to fund the diversification programs that represent Angola's long-term economic strategy.
Angola's petroleum history stretches back to the 1950s, with commercial production beginning in the Cabinda enclave in 1968 under Chevron's predecessor, Gulf Oil. The industry expanded dramatically following the end of the civil war in 2002, with deepwater discoveries driving production to a peak of 1.8 million bpd in 2008. Since then, output has declined due to natural field depletion, underinvestment during the 2014-2016 oil price downturn, and the maturation of major producing fields. Reversing this decline is a top priority for both Sonangol and the Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG).
Major Oil Operators in Angola
Angola's petroleum sector is operated by a consortium of international oil companies (IOCs) working under production sharing agreements (PSAs) with Sonangol as the national concessionaire:
TotalEnergies is the largest foreign operator by production volume, with operations spanning Blocks 0, 14, 17, 17/06, 20/11, and 32. The company's Block 17 complex (Dalia, CLOV, Pazflor, Girassol) is one of the most prolific deepwater production hubs in the world, with combined output exceeding 300,000 bpd at peak. TotalEnergies has been a consistent investor in Angola, committing to exploration in the Kwanza and Namibe basins.
Chevron operates the Cabinda Gulf Oil Company (CABGOC) — Block 0 in the Cabinda enclave, one of Angola's oldest and most mature production areas. Chevron also operates Block 14 and the Angola LNG facility in Soyo. The company has produced over 4 billion barrels from Angola since operations began.
BP operates Block 18 (Greater Plutonio) and has interests in Blocks 15/06 and 31. BP's presence in Angola represents a significant part of its African upstream portfolio, with operations focused on deepwater production.
Eni operates Blocks 15/06 (the West Hub and East Hub developments) and has exploration interests in the Namibe basin. Eni has been one of the most active explorers in Angola's frontier basins.
ExxonMobil holds interests in Block 15 (Kizomba complex) through its majority-owned subsidiary Esso Exploration Angola. The Kizomba A, B, and C FPSO developments have been cornerstone production assets.
Angola's Oil Blocks: Production Basins & Licensing
Angola's petroleum resources are organized across several sedimentary basins along the Atlantic margin. The Lower Congo Basin is the most prolific, hosting the majority of current production from Blocks 0, 14, 15, 17, and 18 in water depths ranging from shallow (<200m) to ultra-deepwater (>1,500m). The Kwanza Basin represents Angola's major exploration frontier, with pre-salt geological formations analogous to Brazil's Santos Basin — raising expectations of significant new discoveries. The Namibe Basin in southern Angola remains largely unexplored, with recent licensing rounds attracting interest from multiple IOCs.
The ANPG manages Angola's licensing rounds following the separation of regulatory and commercial functions previously both held by Sonangol. Recent licensing rounds have offered blocks across all three basins, with improved fiscal terms designed to attract investment in the context of the global energy transition and competition from other African producers including Guyana, Brazil, and Mozambique.
Sonangol: The State Oil Company's Transformation
Sonangol E.P. (Sociedade Nacional de Combustíveis de Angola) is Angola's national oil company and the concessionaire for all petroleum operations in the country. Founded in 1976, Sonangol has been the single most important economic institution in Angola's history — controlling petroleum concessions, holding participating interests in all blocks, and managing the PSA framework that governs the relationship between the state and international operators.
Under President Lourenço's reform agenda, Sonangol has undergone significant restructuring since 2018: divestiture of non-core assets (banking, insurance, telecoms, real estate), reduction of headcount by approximately 30%, appointment of independent board members, engagement of international auditors (Deloitte, PwC), and publication of audited financial statements. The company's regulatory role was transferred to the ANPG, allowing Sonangol to focus purely on commercial operations. Despite these reforms, challenges remain in operational efficiency, technological capacity, and the development of Sonangol's own E&P capabilities independent of IOC partnerships.
The Lobito Corridor: Oil, Gas & Critical Minerals Infrastructure
The Lobito Atlantic Railway Corridor — while primarily focused on critical minerals export — has major implications for Angola's energy sector. The $4+ billion corridor backed by the US, EU, and G7 will enhance Angola's role as a logistics hub connecting Central and Southern Africa to Atlantic shipping routes. For the petroleum sector, improved transport infrastructure reduces operational costs, supports the development of gas-to-power projects in the corridor zone, and positions Angola as a strategic energy-minerals-logistics nexus on the Atlantic seaboard.
Angola's Exit from OPEC
In a significant strategic decision, Angola left OPEC in January 2024 after disagreements over production quotas. Angola had been an OPEC member since 2007, and its departure reflected frustration with reduced production targets that did not account for the country's investment needs and production capacity constraints. The exit allows Angola to set its own production targets and pursue investment attraction strategies without OPEC quota limitations — though it also removes the price support mechanism that OPEC coordination provides. Angola continues to participate in broader producer-consumer dialogues and maintains relationships with OPEC member states, particularly its Gulf partners.
Investing in Angola's Oil & Gas Sector
Angola actively seeks to attract $5+ billion annually in upstream investment to arrest production decline and develop new resources. Key investment incentives include: reformed PSA terms with improved contractor economics, tax incentives for marginal field development, reduced royalty rates for deepwater and ultra-deepwater blocks, and a more transparent and predictable regulatory framework under the ANPG. The Ministry of Mineral Resources, Petroleum, and Gas (MIREMPET) coordinates overall sector policy.
For international investors, Angola's petroleum sector offers: proven geological prospectivity (one of the most prolific offshore basins in Africa), established infrastructure (FPSOs, subsea systems, pipeline networks), a track record of IOC-government partnership, strategic geographic positioning on the Atlantic (proximity to US, European, and Asian markets), and a government actively seeking to improve the investment environment. Risks include: production decline from mature fields, regulatory uncertainty during institutional transition, Angolan local content requirements, and the global energy transition's long-term impact on hydrocarbon investment appetite.
Energy Transition & Gas Monetization
Angola's energy transition strategy positions natural gas as a critical bridge fuel. The country has approximately 11 trillion cubic feet (Tcf) of proven gas reserves, much of it associated gas from oil production. The Angola LNG plant in Soyo (5.2 MTPA capacity) exports LNG primarily to Asian and European markets, while domestic gas utilization is being expanded through gas-to-power projects. Angola has committed to eliminating routine gas flaring and increasing gas capture rates. Solar and wind resources are being explored for domestic power generation, though petroleum will remain the dominant sector for the foreseeable future.
Production Outlook & Forecast
Angola's production outlook depends on the success of ongoing investment attraction efforts. Without significant new project sanctions, output could decline to below 900,000 bpd by 2030 as mature fields deplete. However, new developments — particularly in the Kwanza Basin pre-salt play, marginal field revivals, and enhanced oil recovery (EOR) on existing fields — could stabilize or even increase production. The ANPG targets maintaining production above 1 million bpd through 2030 via a combination of new licensing, fast-track development schemes, and improved recovery from existing fields. The success of this strategy will determine Angola's fiscal sustainability and its ability to fund the economic diversification programs that represent the country's long-term future.
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For related intelligence across the Angola Digital Network, see: Angola LNG (natural gas and LNG), Angola Energia (energy sector), Angola Leaks (Sonangol governance), Angola 2050 (long-term strategy).