The President of the Angolan Agency for Oil, Gas and Biofuels (ANPG), Paulino Jerónimo, was a guest at a CERAWeek session that held last week titled “Angola’s New Upstream: Increasing Competitiveness, Repositioning for the Future.”

Also present at the session was the Chairman of the Board of Directors of Sonangol, Sebastião Martins. The annual event was cancelled earlier this year due to COVID-19, but it was rescheduled to hold virtually to bring together world leaders in the energy sector.

During the session, the president spoke about the recent developments in the country’s petroleum sector and the timeline set for the signing of new E&P contracts, which he said will be in the second half of 2021. He assured that the ANPG is taking steps towards the sustainability of oil exploration and production in the country.

He referred to the recent creation of two working groups that are to increase the competitiveness of the oil sector. One of the groups aims to establish the rules for sharing of logistics among operators, creating synergies and optimising operating and production costs.  The other group is to create a fiscal and contractual benchmark to understand the sector’s level of competitiveness in Angola when compared to the African continent and the rest of the global markets.

Excerpts from his submissions:

“We closely monitor investors with operations in Angola, both operators and service providers. In 2019 and 2020 we signed agreements with contracting groups for blocks 14, 15, 17 and 18. In block 14 we evaluated three development areas and, as a result, we will drill six new wells. In block 17 we signed an agreement for the extension of the concession license in two distinct stages: the first until 2035 and the second until 2045. With this extension it is expected that in 2024 this block will be producing at least 400,000 barrels a day.

“In block 18, the development of Campo Platina was approved, and the extraction of the first oil is expected at the end of next year. We also signed an agreement with the new gas consortium to develop the non-associated gas fields in blocks 1, 2 and 3 and to get it to Angola LNG. During this same period, we were able to bring three new platforms to Angola, and discussions have been taking for the installation of some more, so that we can execute the plan initially approved and manage to mitigate the decline in production”

“Both themes are important, but the second is particularly relevant because it will allow us to assess the level of fiscal and contractual competitiveness that we have at present and, consequently, introduce the improvements that are necessary”

“Today we know that Angola has to advertise its bidding processes more and better, namely with more time in advance so that potential investors have the necessary time to evaluate the available data. We also know that we have to make the share of profit oil more attractive for those who invest. These are two aspects that will certainly improve the tenders that we will launch later this year and that will take place in the first half of 2021”.

“This issue is of paramount importance to all the major operators, who intend to continue to operate profitably but respecting the environmental laws in force. Angola is in perfect harmony with the implementation and compliance of all the environmental laws. We will do everything to ensure that CO2 emissions in our country are in accordance with international laws, because we want investors to continue to trust us and see Angola as a partner that complies, commits and works together, solely to achieve a win-win end result for both parties. Respecting, obviously, the environment and communities”.