Recent Bilateral Agreements Driving Angola’s O&G Industry Growth

Angola-Zambia Fuel Refinery and Export Deal

With Angola positioning itself as a regional fuel hub, a deal signed in January 2023 with neighboring Zambia for the provision of petroleum products will boost the country’s fuel exports and revenue generation. The deal follows Zambia acquiring a stake in Angola’s Lobito Refinery in 2022, an agreement which paved the way for the Zambian government to direct investment towards boosting the refinery capacity of the facility.

Additionally, Zambia and Angola signed a $5 billion deal to develop a pipeline which will transport petrol, kerosene, diesel and gas from the Lobito Refinery to Zambia. In addition to providing Zambia with a steady supply of petroleum products, the bilateral agreement consolidates Angola’s position as a regional energy hub and exporter.

Angola-Sierra Leone Knowledge Sharing and Trade Deal

During the Angola Oil & Gas (AOG) conference – Angola’s premier event for the energy sector – in November 2022, Angola, through the National Agency for Oil, Gas and Biofuels (ANPG), signed a deal with Sierra Leone for the two countries to cooperate on industry growth through the sharing of knowledge, technology and industry best practices. As part of the deal, Angola and Sierra Leone will enhance cooperation on energy trading as well as infrastructure investments, leveraging Angola’s expertise as a major producer to develop Sierra Leone’s burgeoning energy industry.

Angola-Namibia Local Content Deal

With Angola committed to helping emerging African energy markets optimize oil and gas sector growth, the country, through the Ministry of Mineral Resources, Petroleum and Gas, signed a deal with Namibia’s Ministry of Mines and Energy during AOG 2022 to cooperate on the exchange of information, industry data management, geological studies and the development of joint petroleum and gas projects. The deal will allow Namibia and Angola to work together in addressing energy transition-related industry challenges while optimizing the exploitation of associated opportunities.

Angola-Italy Gas Production Deal

With the Russian-Ukraine war stressing Italy’s gas supplies and Angola seeking partners to maximize the development of its gas industry, the two parties signed an agreement in 2022 paving the way for collaboration regarding the production and exportation of natural gas. As per the terms of the agreement, Italy and Angola will work together in the renewable energy, liquefied natural gas and biofuels sectors as well as in training regarding technology and environmental sustainability.

Angola-Russia Hydrocarbon Industry Cooperation

While Angola is one of Africa’s largest oil producers, the country has also turned to global leading producing countries such as Russia to enhance activities and infrastructure rollout across the entire oil and gas value chain. In 2019, Angola signed a cooperation deal with Russian state-owned oil and gas firm Rosneft for the Russian firm to help the central African country to modernize existing infrastructure, build new downstream facilities and to maximize upstream activities.

Diversification Deals

Angola has also signed various bilateral agreements which will enable the country to diversify its energy mix to ensure a diverse energy economy. In 2019, the country signed a deal with Portugal for renewable energy investments and projects rollout following a 2018 deal reached with the Chinese government for the development and funding of the 2.1 GW Caculo Cabaca Hydropower project in Kwanza Norte Province.

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Onur Yilmaz

Onur Yilmaz