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The oil industry in Angola is in decline. Angola has lost about 50% of its production capacity over the last 10 years, dropping from 2 million barrels per day to about 1 million.
During his speech on the panel “The Future of the Angolan Oil Industry” at the Angola Economic Forum, Patrício Quingongo, CEO of PetroAngola and promoter of the event, highlighted worrying trends of decline in production and investment in the country’s oil industry.
The forum, which started on Wednesday, June 12, and runs until Friday, June 14, brings together experts and industry leaders to discuss the challenges and opportunities of the sector.
Quingongo revealed that Angola is losing $6 million daily due to the decline in oil production. He pointed out that, over the last 10 years, the average decline was 150,000 barrels per day.
The CEO presented two scenarios for the future of Angolan oil production until 2030. The optimistic scenario, based on government-announced programs, projects a production of 1,143,000 barrels per day. The pessimistic scenario, if these programs do not achieve the expected success, foresees that production could fall to less than 500,000 barrels per day. “Angola is the only country in the world that has registered such a decline without having undergone any catastrophe,” highlighted Quingongo.
A significant reduction in direct investment in the industry was also a crucial point in his speech. According to Quingongo, the average decline in investment is 6% per year, evidenced by the absence of new oil discoveries and the lack of sanctioning new projects since at least 2023.
At a time when the Angolan industry was heated, we had an investment of $16 billion in the development of new fields, a number that has fallen by more than half, he observed. The expert explained that this investment is crucial for the development of new projects, as opposed to the annual revenue allocated to current operations.
Between the late 1990s and early 2000s, Angola was the main destination for investments in the oil industry but lost this position to other more attractive countries due to several reasons, including bureaucracy.
Less than 2% of oil revenue stays in Angola because the industry is controlled by foreign companies that bring in equipment and know-how, added Quingongo, highlighting the urgent need for policies that encourage local investment and the retention of more revenue in the country.
