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Africa News of Wednesday, 13 October 2021

Source: angop.ao

Angola has room for more investors in the oil sector - President Lorenco

President of the Republic, Joao Lourenco President of the Republic, Joao Lourenco

The President of the Republic, João Lourenço, said this Wednesday, October 13 in Luanda that there is space in Angola for investors, mainly in free areas and in new exploration zones in sedimentary basins, where it is necessary to quantify the potential of hydrocarbon resources.

Speaking via video conference on the first day of the plenary session of the IV International Forum “Russian Energy Week”, taking place in Moscow, Russian Federation, João Lourenço recalled that Angola has restructured its oil sector.

In this regard, he said that the National Agency of Petroleum, Gas, and Biofuels (ANPG) was created, with the function of concessionaire and regulator of the "upstream", and the Regulatory Institute of Petroleum Derivatives (IRDP), with the function of regulator of the "mid-downstream".

He explained that Sonangol now focuses on activities in the oil sector value chain, that is, prospecting, research, evaluation, development, and production of crude oil and natural gas, refining, transport, storage, distribution, and marketing of products derivatives.

Angola currently produces around 1.3 billion barrels of oil per day and 2.7 billion cubic feet of natural gas per day.

João Lourenço stated that the activity of exploration and production of hydrocarbons has been essentially limited to crude oil.

He referred that, given the need to economically exploit the country's natural gas potential, as well as the elimination of the respective flaring, the project to build the Angola LNG factory, was implemented, a partnership between Sonangol, Chevron, BP, Eni, and Total, for liquefaction of natural gas.

The project, according to the Angolan statesman, aims at the efficient use of gaseous hydrocarbon deposits, as well as promoting the diversification of the Angolan economy.

He said that actions are underway to implement the New Gas Consortium, which has as its objective the development of non-associated gas with a view to allowing the continuous supply of gas to the Angola LNG plant and, consequently, the supply of gas to the Central de Soyo Combined Cycle and the fertilizer industry, within the scope of the diversification of the Angolan economy.

President João Lourenço considered that the development of the gas sector constitutes an opportunity for Russian companies, taking into account the experience they have in this field, to contribute to the creation of steel mills, fertilizer factories, power generation, and others.

Also for the "upstream", according to the Head of State, the Executive approved a hydrocarbon exploration strategy for the period 2020-2025, aimed at expanding geological knowledge and access to petroleum resources in Angola's sedimentary basins, with the objective of replenishing and increasing oil reserves.

He also stressed that in order to increase national oil production, the Executive approved the bidding strategy for new oil blocks for the period 2019-2025, which foresees bidding for more than 50 blocks.

"To complement and reinforce this strategy, the Executive also approved the Regime of Permanent Offer of blocks, an instrument aimed at the promotion and permanent negotiation of non-awarded blocks, free areas of concession blocks and concessions awarded to the national concessionaire, opening up here too, an opportunity for Russian companies,” he clarified.

He underlined that with the aim of guaranteeing self-sufficiency in refined products, the Executive is promoting the implementation of construction projects for three refineries, namely in Cabinda, Soyo, and Lobito.

With the construction of these refineries, he stressed, "Angola will have a refining capacity of around 425,000 barrels a day of crude oil."

“Here is an investment opportunity for Russian companies, in the construction of the Lobito refinery, since the international public tender for partnership is still taking place, which ends in October of this year”, he said.

Upon noting that the oil industry is likely to generate greenhouse gas emissions that contribute to global warming, he advocated that the Angolan Government advises that all parties involved in the oil exploration and production activity adopt mitigation and compensation measures, such as improving the energy efficiency, the creation of forests or reforestation.

João Lourenço highlighted the progress of the phenomenon of climate change and the growing concern for the environment, the energy transition to a low-carbon economy, which is currently a theme that configures the agenda of several countries.

He stressed that Angola, like other countries, should develop a national strategy, aiming at the sustainable exploitation of its fossil energy resources, and gradually change the national energy matrix in the medium to long term.

“With all these projects, the country will be able to create opportunities for the development of new renewable energy sources, such as solar, wind, biomass, and others,” he noted.

For this purpose, he said that Sonangol EP, in partnership with oil companies ENI and Total Energies, is developing two projects for the construction of photovoltaic power stations in the provinces of Namibe and Huíla, as well as studying the implementation of production projects. biofuels and hydrogen.

The Head of State emphasized the contribution that the Russian Federation has given in the technical training of Angolan staff for the oil sector, an area of ​​cooperation whose continuity is essential for the economic and social development of Angola.

He added that Angola is committed to strengthening cooperation with the Russian Federation in this and other areas and is open to all companies that want to participate with their investments in the diversification and development of the Angolan economy.

The IV International Forum "Russian Energy Week", which ends on Friday (15), addresses topics relevant to the production of oil and gas in Russia and in countries producing hydrocarbons and fossil energy sources.