Sonangol drives multi-faceted energy growth
The cornerstone of Angola’s economic success is Sonangol, the National Oil Company (NOC), which remains vital to ensuring a growing and sustainable economy as oil remains the country’s primary source of income. While the country is one of the largest producers in Africa, natural declines in legacy fields and a lack of investment in exploration will see production decline in the years to come. As such, Sonangol’s directors have identified maintaining crude oil production and exploration levels in 2023 as strategic projects going forward and are working with investors and project developers to advance E&P efforts this year and beyond. These efforts include introducing tax incentives; opening of licensing rounds; including the implementation of regulatory reforms.
On the production front, Sonangol is also playing a critical role in the development of the Angola Liquefied Natural Gas project, promoting regional development and creating new jobs. The project not only monetizes the country’s natural gas reserves, generates revenue and increases job creation, but also ensures that a consistent supply of energy is brought to the regional market. In addition, the construction of the Lobito, Cabinda and Soyo refineries under Sonangol’s leadership represent critical investments to increase Angola’s refining capacity and stabilize supplies, ensuring the country remains resilient to the impacts of the global supply chain.
Notwithstanding the Company’s hydrocarbon efforts, to adapt to the changing times, Sonangol has adopted adequate tools as part of its diversification strategy – which would result in the NOC transforming from a traditional oil company into a modern energy organization – for the period 2022-2030. This includes using hydrocarbons as a source of funding for the transition process through the development of renewable energy systems.
Therefore, investment in renewable energy is a pillar of Angola’s future economy and Sonangol has already secured a contract to purchase energy from the Caraculo solar photovoltaic plant and is also involved in the contracting process for the Quilemba solar power project. In addition, Sonangol signed a memorandum of understanding with two German-based engineering firms to construct a green hydrogen and derivatives facility in Angola. The plant would make the country a major supplier of green hydrogen, creating new opportunities for revenue generation, job creation and broader socio-economic growth.
Mining drives diversification
Meanwhile, the increase in diamond production and the start of new mining exploration projects provide further investment opportunities in Angola while allowing for diversification and economic resilience. Led by Endiama, Angola’s national diamond mining company, which acts as operator and exclusive concessionaire in managing the diamond sector value chain, the modernization of mining infrastructure and revitalization of exploration are key drivers of Angola’s growth. In order to increase investment in this sector, the country created the Angola Diamond Exchange, due to open later this year, which is fundamental to increasing transparency and credibility in the diamond sector for the growth of Angola’s economy.
All of this and more will be further unpacked during this year’s edition of the Angola Oil & Gas Conference and Exhibition. Covering the entire energy sector and its value chain, as well as other promising industries such as mining, infrastructure and maritime logistics, the conference will drive new investments and developments to create a strong and resilient Angolan economy.
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