Angola is making significant investments in natural gas development as the country faces challenges in sustaining oil production growth following its exit from OPEC production limits. Despite recent increases in oil output, industry analysts believe the growth trajectory is unsustainable in the medium term.
Recent developments show that petroleum companies operating in Angola have initiated two new oil and gas projects while simultaneously shifting focus toward non-associated offshore natural gas fields, aiming to unlock the country's substantial gas potential.
According to the National Oil, Gas and Biofuels Agency (ANPG), Angola's oil production is projected to decline to approximately 1 million barrels per day by 2027, down from the current 1.1 million barrels daily, despite new project launches. Conversely, natural gas production is expected to increase significantly by 2030. This transition is anticipated to boost Angola's liquefied natural gas (LNG) export capacity, enhancing its competitiveness in European and Asian markets.
A major breakthrough occurred this year when Azule Energy, the international joint venture between BP and Eni, discovered significant gas reserves in their first exploration well in Angolan waters. Preliminary assessments indicate potential reserves exceeding 1 trillion cubic feet of natural gas, along with 100 million barrels of associated condensate. The discovery "confirms an active hydrocarbon system and opens doors to new exploration opportunities in the region," according to Azule Energy CEO Adriano Mongini, who described it as a major milestone for Angola's gas exploration efforts and a confidence booster for the Lower Congo Basin's potential.
While Angola has achieved progress in oil and gas projects, sustaining oil production growth remains challenging. The country's oil output peaked at approximately 2 million barrels per day in 2008 but has declined due to insufficient offshore investment and high development costs. Even with new projects from Azule Energy and TotalEnergies, including the Agogo FPSO, Ndungu field, BEGONIA, and CLOV Phase 3 developments, additional production is unlikely to fully offset declining mature field output. Oil revenue fell 4% year-over-year in the second quarter to $5.6 billion due to lower oil prices, while LNG and natural gas export revenues reached $755 million.
In natural gas development, the BP-Eni Azule joint venture is preparing to commence initial gas production from the New Gas Consortium (NGC) project. The construction and operation of the Quiluma and Maboqueiro offshore platforms will serve as crucial testing grounds for Angola's non-associated gas development and could significantly boost the country's LNG exports and government revenues. Market analysis suggests that continued exploration and development of gas resources positions Angola to play a more prominent role in the global natural gas supply chain.