What's Happening?
Angola's President Joao Lourenco has urged energy companies to increase investment in onshore oil fields to address declining crude production. Speaking at an oil and gas conference in Luanda, Lourenco emphasized the need for onshore exploration and highlighted Angola's offer of contractual stability and legal security to attract investors. Angola's crude output fell below one million barrels per day in July, impacting state revenues. The government is finalizing a new licensing plan for 2026-2030, covering offshore blocks and inland basins, and aims to expedite concession awards to encourage exploration.
Why It's Important?
Angola's call for increased onshore investment is critical to stabilizing its oil production, which is vital for the country's economy. Oil revenues fund over 90% of Angola's exports, making it essential to maintain production levels. The new licensing plan and incentives for exploration are designed to attract foreign investment and boost production. Successful implementation could help Angola maintain its position as Africa's third-largest crude producer and ensure economic stability. The initiative reflects Angola's commitment to enhancing its energy sector and securing long-term growth.
What's Next?
The Angolan government will proceed with finalizing the licensing plan and implementing measures to shorten concession award times. Energy companies may respond by increasing exploration activities, particularly in onshore fields. The government will likely monitor the impact of these initiatives on production levels and adjust policies as needed. Angola's efforts to stabilize oil production could lead to increased foreign investment and collaboration with international energy firms, contributing to the country's economic growth.
