For a brief period in 2009, Angola was Africa’s largest oil producer with production reaching 2 million barrels per day. Current production is around 1.37 million barrels per day. This reduction is generally attributed to (i) naturally production profile declines in major plays, (ii) low oil price environment, (iii) disappointing drilling results, and most recently (iv) Covid-19 pandemic effects.
Angola desperately needs to diversity its oil-dependent economy by capitalizing on its other potential strengths such as mineral extraction and agriculture. Even a strong diversified economy, however, will need a solid oil and gas industry as its base for the foreseeable future.
As keynote speaker at the 2019 Africa Oil and Gas Conference, Angolan President João Lourenço said, “Africa has great unexplored hydrocarbon potential, and . . . Angola occupies one of the top spots on the continent. The Angolan government is aware of this reality and its potential, [and] considers petroleum and gas as catalyzers for a new dynamic, renewable and self-sustainable dynamic economy.”