| Written by Mark Buzinkay
Oil and Gas in Africa
The Oil and Gas industry in Africa plays a significant role in the continent's economy, with both onshore and offshore exploration and production contributing to energy markets locally and globally. Africa holds substantial proven reserves of oil and natural gas, particularly in countries such as Nigeria, Angola, Algeria, Libya, and Egypt. These nations have long-established petroleum sectors, with infrastructure that ranges from mature onshore fields to deepwater offshore platforms.
Offshore production has become increasingly important, especially in West Africa, where countries like Nigeria and Angola dominate deepwater output, often in partnership with major international oil companies. Recent offshore discoveries in countries such as Senegal, Mauritania, and Namibia have attracted global attention and investment, suggesting a potential shift in the continent's energy map. Offshore operations typically involve more complex and capital-intensive technology, but they promise higher yields and have been less affected by issues like local unrest or land access disputes that can affect onshore fields.
Onshore oil and gas activities are prominent in North Africa and parts of Central Africa. For example, Algeria and Libya have vast desert-based oil and gas fields, much of which is exported to Europe. However, onshore operations are sometimes hampered by political instability, security risks, or ageing infrastructure. Meanwhile, emerging producers such as Uganda and South Sudan are developing new onshore fields with ambitions to join the ranks of major exporters.
Natural gas is also gaining strategic importance. Mozambique and Tanzania, with their massive offshore gas finds in the Rovuma Basin, are set to become key players in the global LNG market. These developments are not only attracting foreign direct investment but also reshaping energy geopolitics in the region.
Overall, Africa's Oil and Gas industry is a mix of established production zones, emerging frontiers, and ongoing challenges such as governance issues, environmental concerns, and the need for local content development. With growing interest in energy transition, some African countries are also exploring how to balance fossil fuel development with investments in renewable energy.
See also: FPSO Africa - The Rise of a Giant
Oil industry Angola
Angola's oil industry is a cornerstone of its economy, characterized by significant offshore production, a heavy reliance on crude exports, and ongoing efforts to diversify and reform. Here's an in-depth look at its current state:
Production and Reserves
As of late 2023, Angola's crude oil production was approximately 1.13 million barrels per day (bpd), reflecting a decline from its peak of 1.93 million bpd in 2010. The country's proven crude oil reserves are estimated at 2.6 billion barrels, with natural gas reserves around 4.6 trillion cubic feet. (1)
Economic Impact
The oil sector is pivotal to Angola's economy, accounting for about 50% of its GDP and over 90% of export revenues. In 2022, crude oil exports generated approximately $39.94 billion. However, this dependency makes the economy vulnerable to global oil price fluctuations. For instance, in early 2025, oil revenues dropped by 18% compared to the previous year. (2)
Employment and Social Indicators
Despite the oil sector's economic significance, it employs a relatively small portion of the population. In 2023, industry employment, including oil and gas, was about 5.57% of total employment. The majority of jobs are in the informal sector, with a high unemployment rate of 29.6% overall and 52.9% among youth. (3)
Recent Developments and Forecasts
In December 2023, Angola announced its departure from OPEC, effective January 1, 2024, following disagreements over production quotas. This move aims to provide the country with greater flexibility to manage its oil production independently. The oil sector is projected to grow by 1.6% in 2025. (4)
Diversification Efforts
Recognizing the risks of over-reliance on oil, Angola is pursuing economic diversification. Initiatives include attracting foreign investment in agriculture and manufacturing, with support from countries like China. The government is also implementing regulatory reforms to encourage investment in other sectors. (5)
Challenges and Outlook
Angola faces challenges such as high public debt, economic vulnerability to oil price swings, and the need for infrastructure development. Efforts to diversify the economy and reform the oil sector are ongoing, aiming to create a more resilient and inclusive economic environment.
Offshore Oil Industry Angola
Angola's offshore oil industry is a complex network of international and domestic operators, advanced floating production systems, and significant infrastructure investments.
Key Operators and FPSO Assets
TotalEnergies is a leading operator in Angola, managing several offshore blocks. In Block 17, TotalEnergies operates the Girassol FPSO, with partners including Equinor (22.16%), ExxonMobil (19%), BP Exploration Angola (15.84%), and Sonangol P&P (5%). In Block 32, the Kaombo project comprises two FPSOs: Kaombo Norte and Kaombo Sul, each with a capacity of approximately 125,000 barrels per day. (6)
Azule Energy, a joint venture between BP and Eni, operates the Agogo oil field in Block 15/06. The field is producing via the N'Goma FPSO, a converted VLCC with a production capacity of 100,000 barrels per day. (7)
ExxonMobil operates the Kizomba deepwater project in Block 15, which includes multiple FPSOs such as Kizomba A, B, and C. These units have been central to Angola's offshore production since the early 2000s.
See also: The FPSO industry - Characteristics, Challenges, and Future Prospects
Geographical Distribution
Angola's offshore oil fields are primarily located along its western coastline in the Atlantic Ocean. Blocks 15, 17, 18, 31, and 32 are situated in the deepwater regions off the coast of Luanda and further north. Block 15/06, operated by Azule Energy, lies to the northwest, while the Kwanza Basin, including Block 20/11, is located further south along the coast. These areas host a concentration of FPSO units and associated subsea infrastructure. (8)
Upcoming FPSO Projects
The Agogo FPSO, part of the Agogo Integrated West Hub Development in Block 15/06, is under construction and expected to commence operations in late 2025. The FPSO will have a production capacity of 120,000 barrels per day. (8)
TotalEnergies is advancing the Kaminho project in the Kwanza Basin's Block 20/11. This development involves converting a Very Large Crude Carrier into an all-electric FPSO, aiming for a production start in 2028 with a capacity of 70,000 barrels per day. (9)
Additionally, the Cameia-Golfinho development, also led by TotalEnergies in Blocks 20/11 and 21/09, is planning a new FPSO facility with a capacity of 100,000 barrels per day, targeting a startup in 2027.'
These projects underscore Angola's commitment to sustaining and expanding its offshore oil production capabilities through advanced FPSO deployments.
FAQ
1. What role does oil play in Angola's economy?
Oil is the backbone of Angola's economy, contributing roughly 50% of the country's GDP and over 90% of export revenues. Despite this central role, the industry provides relatively limited direct employment, and Angola remains vulnerable to fluctuations in global oil prices, which can significantly impact government revenues and economic stability.
2. Who are the major players in Angola's offshore oil sector?
Angola's offshore oil production is dominated by international oil companies such as TotalEnergies, BP, Eni (via Azule Energy), ExxonMobil, and Chevron, often in partnership with Sonangol, the national oil company. Key deepwater fields are located in blocks 15, 17, and 32, where FPSOs like Kaombo Norte, N'Goma, and Kizomba A operate as central production hubs.
3. What future developments are planned in Angola's oil infrastructure?
Angola is currently investing in several new offshore projects, including the Agogo FPSO, which will start in 2025, the Cameia-Golfinho project, which targets 2027, and the Kaminho project in the Kwanza Basin, which is planned for 2028. These projects are designed to sustain production levels as older fields mature and are increasingly focused on leveraging new technology and cleaner operational methods.
Takeaway
Angola remains a key player in Africa's oil and gas industry, with offshore developments driving its production outlook. While diversification is gaining traction, the nation's economy continues to rely heavily on crude exports. As offshore operations expand, environmental, health, and safety (EHS) risk management becomes critical. Effective mitigation involves real-time data analysis, probabilistic risk models, and contingency planning to address operational hazards and extreme weather. Additionally, oil rig security faces growing challenges, including piracy and cyber threats, requiring integrated surveillance systems and coordinated maritime protection to ensure uninterrupted production and the safety of personnel and infrastructure.
Delve deeper into one of our core topics: Personnel on board
Glossary
Diversification in an economic context refers to the strategic process of expanding a country's income sources beyond a single dominant sector, such as oil and gas. For resource-dependent nations like Angola, diversification aims to reduce vulnerability to global commodity price swings by developing sectors like agriculture, manufacturing, and services. It enhances economic resilience, promotes employment, and supports sustainable growth. (10)
References:
(1) https://www.ceicdata.com/en/indicator/angola/crude-oil-production
(2) https://www.eurasiareview.com/19032025-angola-energy-profile-economy-vulnerable-to-crude-oil-price-swings-analysis-2/
(3) https://tradingeconomics.com/angola/employment-in-industry-percent-of-total-employment-wb-data.html
(4) https://furtherafrica.com/2025/01/30/angolas-oil-sector-set-for-1-6-growth-in-2025/
(5) https://www.reuters.com/world/chinas-xi-willing-work-with-angola-it-moves-oil-2024-03-15/
(6) https://www.offshore-energy.biz/oil-gas-firm-expands-its-offshore-portfolio-in-angola/
(7) https://www.offshore-technology.com/projects/agogo-oil-field-development-angola/
(8) https://energycapitalpower.com/top-five-oil-and-gas-projects-in-angola-2/
(9) https://www.wsj.com/articles/angola-totalenergies-launches-the-kaminho-deepwater-project-600aeabd
(10) Auty, R.M. (2001). Resource Abundance and Economic Development. Oxford University Press.
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