Angola’s energy industry

Angola is among the top oil producers on the African continent. The sector is governed by the National Oil, Gas and Biofuels Agency (ANPG), which hands out concessions and regulates policy related to upstream activities. The state-owned enterprise Sonangol and its subsidiaries have been the main driver behind the nation’s E&P activities and have ramped up exploration activities to replace the country’s depleting reserves and eventually reverse its declining production.

As demonstrated by the Caculo Cabaça project, hydropower is driving renewables’ share in Angola’s energy mix, while non-hydro renewables are also thriving. The government of Angola aims to boost renewable energy’s share of generation capacity to 72.7%, with natural gas further diversifying the energy mix. Meanwhile, 16.3 GW of solar potential has been identified across the country, and several projects are underway to exploit this.

The country is developing its refining capacity, which traditionally only represented around 20% of the national products consumption. The downstream sector is undergoing a massive transformation, with large developments underway to increase the production of refined products.

Angola has repeatedly reformed its policies with a focus on attracting foreign investment to unlock its massive energy potential while supporting local business development. “We have promoted local content, implementing policies aimed at human capital development and social responsibility, while creating conditions to retain existing investors in Angola and attract new ones. Another key element is that we have established closer relationships with all partners, especially investors,” ANPG president Paulino Jerónimo told The Energy Year. “Angola is open for business and has an excellent investment atmosphere that offers great opportunities for sustainable growth.”