ANGOLA – Angola’s National Agency of Oil, Gas and Biofuels (ANPG) has launched a marginal field development public tender with the deadline for submission being 30 September.

Open to foreign entities, the winner will have a deadline of six months to execute the contract, as reported in the Jornal de Angola.

The Southern African nation with an average oil production of 1.2 million barrels per day is Sub-Saharan Africa’s second largest oil producer after Nigeria and has an estimated 17,904.5 million cubic feet of natural gas production.

Further, the country holds 9 billion barrels of proven oil resources and 11 trillion cubic feet of proven natural gas reserves which represent great potential for further economic development and significant business opportunities. 

 Additionally, the on-going reforms in the Oil and Gas sector in the country has led to announcements of new investments and these are expected to increase production in the medium to long-term.

Although the country is a leading oil producer in the region, it currently imports 80 percent of its demand for refined petroleum products including gasoline, diesel, aviation fuel, Jet B for gas turbines, oil fuel, asphalt and lubricants. 

 Only 20 percent of refined products are sourced locally. 

 The refining of crude oil and distribution of refined oil remains well below domestic demand.

 To reduce the country’s dependence on imported refined petroleum, the Government of Angola has plans for the construction of national refineries.

The increasingly competitive global market and lower oil price environment particularly challenge Angola’s high production costs which averages USD 40 per barrel. 

 Industry players emphasize the need for a more competitive business environment with reduced production costs and increased efficiencies. 

 Industry analysts (Wood Mackenzie) project that without needed new investment in mature fields that dominant in Angola, production is estimated to decline significantly by 2020.

Increased pressure to reduce production costs coupled with ongoing restrictions on foreign exchange access have led to significant downsizing of petroleum service companies, contractors, and operators, with some businesses closing operations.

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