Luanda - The Republic of Angola's biggest challenge in upstream oil production is to mitigate the sharp decline in production of the “black gold”, at a time when levels are still at 1.1 million barrels/day, after historical records above these figures.
On this day, 29 September, World Oil Day, it is worth remembering that oil production in Angola already reached levels of 1.8 million barrels in 2015, an average that has fallen to the current figures, influenced in part by insufficient investment in the sector and unscheduled stoppages.
With reserves estimated at nine billion barrels of crude oil and 5.95 billion cubic metres of gas, the country is taking steps to increase production above 1.1 million barrels/day in the coming years.
Among the actions underway are exploration in development areas, the redevelopment of mature fields, the extension of concession periods and the application of new fiscal and contractual terms in marginal fields.
As one of the largest producers in Africa after Nigeria, Angola's general hydrocarbon exploration strategy is to promote geological knowledge and reassess oil potential, with an emphasis on inland basins.
The 2019/2025 Bidding Strategy includes the award of more than 50 new blocks and the permanent block offer regime, which allows blocks to be awarded directly or by limited tender, and the legal regime on local content for the promotion and development of local content in the oil sector.
These instruments were already approved by the government during the last legislature.
Also, in the upstream, for the sustainability of the sector, actions are being developed for the exploration and production of natural gas, an important resource for the energy transition, a process that the country is already taking steps towards.
In a first phase, as the head of the sector's portfolio, Diamatino Azevedo, mentioned at the 3rd "Oil and Gas" International Conference and Exhibition, the New Gas Consortium (NCG) has already been set up which, in a first phase, will develop the non-associated gas fields of Quiluma and Maboqueiro, to supply gas to the Angola LNG plant and the ammonia and urea production plant in Soyo.
Oil fields
Historical records show that exploration activity, or rather the search for oil, in the country is concentrated in the Kwanza and Lower Congo basins.
The blocks in production cover the maritime and onshore areas of the provinces of Cabinda and Zaire, but there are offshore and onshore reserves elsewhere, with recent discoveries also off the southern coast, particularly in the province of Namibe.
Angola's oil production comes from 16 oil concessions, 13 of them in the offshore maritime zone and three in the onshore terrestrial zone, with more than 20 blocks in operation.
Of all the blocks, according to the statistics compiled up to June 2023 by the Ministry of Finance's Special Taxation Directorate (DTE), Block 17 continues to lead production, with 61.83 million barrels, followed by Block 32 with 27.12 million barrels, block 15 with 22.60 million, Block 0 with 21.83 million and Block 15/06 with 17.6 million barrels, contributing thousands of dollars to state revenues.
Top five in production
Crude oil extraction in Angola is carried out by international companies, contributing to the evolution of the country's oil industry.
The main player in Angola is TotalEnergies Angola, a subsidiary of the French company Total, which explores in nine blocks, namely 17, 32, 0, 14k, Angola LNG- Gas Natural Liquifeito, 17/06, 16 and 48.
Next up is Azule Enegy, with blocks 15/06, 31, 1/14, 18 and 28, Cabinda north and Cabinda centre.
The "Top Five" also includes Equinor, which is also active in blocks 17, 15, 14/01 and 29, and ExxonMobil in blocks 30, 44 and 45.
Cabinda Gulf Oil Company, a subsidiary of the US company Chevron, is active in blocks 0 and 14.
In addition to the national oil company, Sonangol, Italian companies ENI, BP and SSI are also active in the market, among others that are beginning to invest in this segment and in the provision of services.
Export revenues
In Angola, the oil sector accounts for 95 per cent of exported products and 30 per cent of gross domestic product (GDP).
In terms of exports, in 2022 the country shipped 391 million barrels of crude oil at an average price of 101.992 dollars, totalling gross revenue of around 39.94 billion US dollars.
The latest official figures, for the second quarter of this year, show crude oil exports totalling 94.063 million barrels, a volume valued at 7.16 billion US dollars in gross revenue.
At an average price of USD 76.19/barrel, this reflects an increase in exports of around 6.71 per cent compared to the first quarter and a reduction of 9.47 per cent compared to the same period in 2022.
In the first quarter of this year, 2023, the figures totalled USD 6.93 billion with exports of 88.14 million barrels at an average price of USD 81.17/barrel.
The majority of these exports are to the People's Republic of China, a country with which Angola owes more than 40 billion dollars.
For example, in the second quarter of this year, 2023, China received 64.25 per cent of exports. The remaining was exported to other countries on the continents of Asia, Europe and America. NE/AC/DAN/DOJ
