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Angola_Oil and Gas Industry Growth

Update on the Oil and Gas Market in Angola 

Angola holds abundant untapped oil and gas resources, with an estimated 9 billion barrels of proven crude oil reserves and 11 trillion cubic feet of proven natural gas reserves. As of early 2025, Angola produces approximately 1.03 million barrels per day (bpd)—a notable drop from its peak production of around 2 million bpd in 2008. The petroleum industry remains vital, accounting for nearly 75 percent of government revenues. In December 2024, Angola began ramping up gas output from the Sanha Lean Gas Connection Project, initially producing around 80 million standard cubic feet per day (MMSCFD) of associated natural gas—equivalent to roughly 2.27 million cubic meters per day—with plans to reach up to 300 MMSCFD.

Institutional Reforms

As a major institutional reform, the government transferred concessionaire rights from Sonangol, the national oil company, to the National Agency for Petroleum, Gas and Biofuels (ANPG) in 2019. ANPG, under the Ministry of Mineral Resources, Oil and Gas (MIREMPET), now serves as the sector’s upstream regulator, responsible for concession block awards and contract management. Sonangol has since narrowed its focus to upstream, midstream, and downstream operational activities and divested many of its non-core business units via the Institute for the Management of State Assets and Participation (IGAPE). These reforms were intended to improve transparency and efficiency, although challenges remain. 

The oil and gas sector has many private sector players including BP, Total Energy, Schlumberger, Halliburton, Baker Hughes, General Electric, Maersk Oil and Gas, Norsk Hydro, and FMC Energy. Chevron and ExxonMobil, two of the largest and longest-standing operators in Angola, have maintained a presence in the country for several decades. Both companies were recently awarded new offshore blocks under ANPG’s licensing rounds and are set to begin new exploration activities in Angola’s Lower Congo and Kwanza basins. 

Although the Angolan government implemented reforms in 2017 aimed at revitalizing the sector, many industry stakeholders continue to advocate for deeper structural changes to address inefficiencies and stimulate foreign direct investment.

Angola’s Exit from OPEC

In December 2023, Angola officially withdrew from OPEC after disagreements regarding production quotas. This decision reflects Angola’s desire to regain greater autonomy over its oil production strategy, aiming to increase output and revenue in a competitive global oil market. The move has opened the door for greater flexibility in future production planning and may lead to increased investment in both exploration and mature field optimization. 

Refinery Development

The refining of crude oil and distribution of its derivatives remain well below domestic demand. Angola is the second leading producer on the sub-Saharan Africa after Nigeria yet is heavily dependent on imported refined petroleum. The country spends over $2 billion on petroleum imports annually. To address this imbalance, the Government of Angola is prioritizing refinery development, with upgrades to the country’s only operating facility in Luanda as well as three new refineries in the pipeline (Cabinda, Soyo, and Lobito).  The aim is to attain sufficiency in refined hydrocarbons through public-private partnerships (PPPs), with private companies financing investments in midstream projects. 

Market Challenges

Angola’s oil and gas sector remains difficult to navigate despite reform efforts. Companies face persistent bureaucracy, lack of transparency in procurement and licensing, and inconsistent regulatory enforcement. Access to foreign exchange is limited, and restrictions on dividend repatriation continue to deter foreign investment. Taxation is complex and burdensome, with overlapping obligations under various contract types and limited clarity in tax administration. High operational costs, shifting policies, and difficulties in identifying capable local content partners further increase the risk and cost of doing business. As a result, the sector has witnessed substantial downsizing and withdrawal of petroleum service companies, contractors, operators, and investors.  Significant effort is required to maintain a foothold in Angola and having local representation is key to success in the market. U.S. companies are encouraged to have a local partner who can be on the ground looking for ways to distribute products or services. U.S. companies with products with multiple end users and applications outside of the oil and gas sector should consider this market.  
 

Market Opportunities

Oil and Gas Equipment

  • High quality, cost-saving and operations’ optimization technology solutions to lower costs in mature oil fielExploration and production equipment and services (e.g., deep and ultra-deep technologies, namely drill ships, floating vessels)
  • Environmental protection and monitoring technologies (e.g., sea pollution remediation products)
  • Lubricant oils and grease
  • Refinery equipment and technologies, including modular refining units, process control systems, safety valves, pumps, compressors, and emissions monitoring tools

Oil and Gas Services

  •  Seismic data reporting and releasing
  • Operations risk insurance
  • Engineering, procurement, and construction (EPC) services for refinery upgrades and new builds
  • Maintenance, repair, and overhaul (MRO) services for downstream facilities


Additional Opportunity Areas and Cross-Sector Potential

Companies entering Angola to service the oil and gas sector may find significant cross-over opportunities in adjacent sectors such as:

  • Power generation, especially gas-to-power and hybrid power solutions for remote operations
  • Logistics and infrastructure development, including port services, warehousing, road construction, and base operations
  • Health, safety, and environmental (HSE) technologies, which are in demand across mining, manufacturing, and construction sectors
  • Industrial automation and digital solutions, such as predictive maintenance, asset monitoring, and supply chain visibility platforms
  • Water treatment and waste management solutions, which are relevant for both oil operations and urban/industrial use
    U.S. companies that offer modular, scalable technologies with applications beyond oil and gas—such as energy, infrastructure, or industrial processing—are well-positioned to succeed in Angola’s evolving economic landscape.
     

Next Steps

For more information about the key opportunities in the oil and gas sector, information about companies currently operating in Angola, and to design your market-entry strategy, contact Commercial Specialist, Manuel Cafala at Manuel.Cafala@trade.gov.
U.S. companies are encouraged to seek out Angolan firms that participate in the Offshore Technology Conference (OTC) in Texas, or the Angola Oil and Gas Conference on September 3-4, 2025. These events offer valuable opportunities to understand current priorities, make business connections, and explore potential partnerships with local firms active in Angola’s oil and gas value chain.