The AEC believes that Sonangol is a strategic partner for Angola’s oil and gas industry and will continue to play a major role in facilitating investment and driving project developments

LUANDA, Angola, June 14, 2024/APO Group/ — 

The African Energy Chamber (AEC) (www.EnergyChamber.org)– led by Executive Chairman NJ Ayuk – met with Sonangol CEO Sebastião Gaspar Martins in Luanda this week, where the parties discussed Sonangol’s vision for the oil and gas industry. Martins is speaking at the African Energy Week (AEW): Invest in African Energy conference this November – Africa’s premier energy event, hosted in Cape Town.

The AEC believes that Sonangol is a strategic partner for Angola’s oil and gas industry and will continue to play a major role in facilitating investment and driving project developments. With a focus on expanding exploration and production, the company plays a critical role in Angola’s efforts to boost its oil and gas industry and bolster economic growth.

Angola aims to produce 1.1 million barrels of oil per day (bpd) by 2027, with plans to reach two million bpd in the long-term. At the same time, the country aims to increase the share of natural gas in the energy mix to 25% by 2025, highlighting strategic opportunities for foreign investors and project developers. To achieve these goals, the country’s NOC Sonangol has undergone a transformation – underpinned by a privatization initiative spearheaded by the government. Now, Sonangol has emerged as a strong and reliable partner for oil and gas companies, and is committed to ushering in a new era of economic growth on the back of oil and gas development.

To support exploration and production, Sonangol is driving a series of projects in partnership with IOCs. The NOC – alongside project partners TotalEnergies and Petronas – made FID on the Kaminho deepwater project in May 2024. Comprising the Cameia and Golfinho fields, the project represents the first large deepwater development in the Kwanza Basin. Production is on track for 2028. Additionally, Sonangol is developing the Agogo Integrated West Hub Development Project in collaboration with international energy company Azule Energy. This project involves drilling 36 new wells and installing an FPSO with a production capacity of 120,000 bpd, a gas injection capacity of 230 million standard cubic feet per day, and a water injection capacity of 12,000 bpd. Scheduled for operational by late-2025, this initiative underscores Sonangol’s commitment to expanding oil production.

Additionally, in January, Sonangol announced the successful drilling of the second evaluation well in Block 11 of the onshore Kwanza basin. The drilling confirmed positive results in the Tobias field, greatly enhancing its potential. This positive outcome, alongside the success of the Tobias 13 well, positions Sonangol and its partners for the reactivation of production in the Kwanza basin by the end of the year.

Meanwhile, Sonangol’s strategic initiatives are not only focused on increasing oil production but also on embracing a more sustainable energy mix. The company’s commitment to boosting the share of natural gas reflects a broader trend towards cleaner energy sources. By integrating more natural gas into its energy portfolio, Sonangol aims to reduce carbon emissions and support global efforts towards energy transition. In December 2023, Sonangol inaugurated the Falcão Phase 2 gas project, enhancing the Angola LNG plant’s capability to supply gas to the Soyo 1 combined-cycle power plant. This initiative has increased processing capacity to 125 million cubic feet and extended gas distribution to industrial and petrochemical facilities in southern Angola.

“Sonangol is positioning itself as a key partner in Africa’s energy sector, driving significant advancements and fostering partnerships both locally and internationally. With a strategic focus on expanding E&P capabilities, Sonangol plays a central role in Angola’s ambitions to enhance oil and gas output,” states NJ Ayuk, Executive Chairman of the AEC. “Sonangol’s vision for Angola encompasses not only meeting domestic energy needs but also leveraging its expertise to support regional energy security, foster economic diversification and alleviate energy poverty.”

At the upcoming AEW: Invest in African Energy conference – scheduled for 4-8 November in Cape Town – Sonangol will play a leading role. A key event highlight will be the Invest in Angola Energies roundtable, where Sonangol’s participation is set to stimulate discussions among stakeholders, investors and policymakers on advancing Angola’s oil and gas sector through strategic investments and opportunities.

Distributed by APO Group on behalf of African Energy Chamber.