Angola aims to maintain its current oil output until 2030 to support growth

The oil producer is encouraging new investments to develop the hydrocarbons sector with incentives, a top official says

The port of Luanda. Angola's economy is forecast to grow by 3.4 per cent in 2024. AFP

Angola aims to maintain oil production of 1.1 million barrels per day until 2030 as part of its continuing efforts to develop the hydrocarbons sector and bolster the economy, the head of the country's regulatory body for oil and gas has said.

The country is encouraging investments to maintain current production levels as output declines from its old fields, with total investment rising by 96 per cent last year to about $15 to $20 billion compared to 2022.

In 2024, the total investments in the hydrocarbons sector are expected to be more than $14 billion, Paulino Jeronimo, president of the National Agency of Petroleum, Gas and Biofuels of Angola, better known as ANPG told The National. ANPG is the regulator of the country's oil and gas sector.

Angola is “promoting investment in order to stabilise the production at 1.1 million [barrels per day]. This is very important for us because 95 per cent of our exports is oil and gas”, he said.

“The country is creating the necessary incentives in order for the investors to put money. Since 2018 we have made some changes and created ANPG, that is the new regulator, to have more transparency,” in the sector.

Among the incentives offered by the southern African country include the reduction in the payment of tax on profits generated by companies to 25 per cent from 50 per cent.

It is also focusing on developing marginal fields – the fields that were discovered before but were not developed because they were not economically viable as part of its strategy to maintain the output levels.

Some of the big companies currently investing in the oil sector for exploration and production include France’s TotalEnergies, Chevron, Exxon Mobil, BP and Italy’s Eni.

Angola also expects the UAE to invest in its oil and gas sector as the investment co-operation between the two countries continues to strengthen.

The Arab world’s second largest economy is investing heavily in different sectors of Angola’s economy including ports, property, defence, clean energy and agriculture.

DP World, AD Ports, Masdar, defence conglomerate Edge and Dubai Investments are among the companies that have invested in the African country, starting about three years ago.

The investment increased as Angola emerged from a recession after the pandemic-induced slowdown and low oil prices. The Angolan government also focused on privatisation of its assets to attract more investment into the country.

Angola’s economy is projected to slow sharply in 2025 and record a growth of 1.2 per cent on falling oil output and lower oil prices, according to a new report from BMI, a Fitch Solutions company.

Its economy is forecast to grow 3.4 per cent in 2024.

“Oil output will decline by 4.7 per cent in 2025, due to the absence of new projects with substantial production volumes in the near term,” the report said.

“Given that oil accounts for around 90 per cent of total exports, we expect exports to decline by 4.3 per cent. Meanwhile, strengthening household spending and foreign investment in the oil and gas sector will bolster demand for imports.”

China, the world’s second-largest economy, is currently its biggest export market followed by Indonesia, India, Brazil and European countries of Spain and France, according to official data.

Angola, which was part of Opec since 2007, left the group last year amid a row over production quotas.

Diamantino Azevedo, Minister of Mineral Resources, Oil and Gas, said at the time it left the group “in defence of its interests”.

Mr Jeronimo did not comment on whether the country has plans to rejoin the group saying “it's a political decision”.

The country is also focusing on cutting emissions in the oil and gas sector and there is a “comprehensive plan between us and all the oil investors”, he said.