Angola: A New Law to Revitalize Aging Oil Production

Angola adopts legislation to revitalize its mature oil fields. The goal: stabilize production above one million barrels per day through fiscal incentives and strategic investments.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Facing a sustained decline in oil production over recent years, Angola is intensifying efforts to maximize the exploitation of its hydrocarbon resources. In November, the government enacted legislation aimed at increasing the viability of mature oil fields, which came into force on December 6.

These fields, representing about 70% of the country’s monetized reserves, are a major focus for the national economy, heavily reliant on oil-generated revenues. The new law introduces fiscal incentives, such as reductions in production taxes and oil income taxes, to attract investors. These measures aim to extend the life of oil fields and stabilize national production, currently around 1.1 million barrels per day, compared to 1.8 million barrels in 2010.

Reduction in Taxes and Strategic Objectives

The Angolan government hopes this reform will encourage oil companies to maintain operations on aging fields despite rising operating costs. Additionally, a licensing cycle for oil and gas exploration is scheduled for the first quarter of next year, aiming to discover new viable reserves.

This initiative is part of a broader policy to maintain stable production, essential for the country’s economic and social stability. Since its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) nearly a year ago, Angola has ramped up actions to preserve its position in the global hydrocarbons market.

A Concerning Decline

The decline in Angola’s oil production over the past years is attributed to the gradual depletion of historical fields and a lack of investment in new infrastructure. In 2018, the country was still producing 1.3 million barrels per day. This drop has significantly impacted public finances, as oil represents the bulk of Angola’s export revenues.

In response, authorities are adopting a proactive approach, diversifying strategies to revive the oil sector. In addition to fiscal reforms, efforts are underway to improve transparency in the hydrocarbons sector, a key factor for attracting international investors.

Towards a Gradual Recovery

While the measures recently adopted by the Angolan government appear promising, their long-term impact remains uncertain. Oil operators, facing increasing volatility in oil prices and stricter environmental requirements, will need to carefully assess their investments in a market marked by complex geopolitical challenges.

By addressing the challenges of its aging fields, Angola seeks to maintain its place among Africa’s major oil producers. However, this ambition largely depends on the country’s ability to attract investors and diversify partnerships in a rapidly evolving global energy context.

U.S. sanctions targeting Rosneft and Lukoil trigger a rebound in oil, while the European Union prepares a clampdown on liquefied natural gas and maritime logistics, with immediate repercussions for markets and Russia’s export chain.
Ten days before COP30, Brazil awarded five offshore oil blocks for over $19mn, confirming its deepwater development strategy despite environmental criticism.
Tripoli mise sur des partenariats avec des majors et jusqu’à 4 milliards $ d’investissements pour relancer sa production pétrolière, malgré un climat politique divisé.
Niger hardens its stance on energy sovereignty but avoids breaking with China National Petroleum Corporation, its main oil industry partner, in order to safeguard export revenues.
As Brent hovers near $60, growing opacity around OPEC’s output restrains a steeper decline in crude prices amid surplus warnings by the International Energy Agency.
Portuguese energy group Galp plans to finalise a strategic partnership for its offshore oil project Mopane in Namibia before the end of the year.
A traditional leader from the Niger Delta is seeking compensation before Shell’s onshore asset sale, citing decades of unaddressed pollution in his kingdom.
The Oxford Energy Institute study shows that signals from weekly positions and the Brent/WTI curve now favor contrarian strategies, in a market constrained by regulation and logistics affected by international sanctions. —
Russian company Russneft has shipped its first oil cargo to Georgia’s newly launched Kulevi refinery, despite the absence of formal diplomatic ties between Moscow and Tbilisi.
New Stratus Energy has signed a definitive agreement with Vultur Oil to acquire up to 32.5% interest in two onshore oil blocks located in the State of Bahia, Brazil, with an initial investment of $10mn.
Clearview Resources has completed the sale of all its shares to a listed oil company, exiting Canadian financial markets following shareholder and court approval.
The Brazilian government has approved an offshore drilling project led by Petrobras in the Equatorial Margin region, weeks before COP30 in Belém.
In Taft, a historic stronghold of black gold, Donald Trump's return to the presidency reopens the issue of California's restrictions on oil production and fuels renewed optimism among industry stakeholders.
Vantage Drilling halted a 260-day drilling contract for the vessel Platinum Explorer following a rapid evolution of international sanctions regimes that made the campaign non-compliant with the applicable legal framework shortly after it was signed.
Paratus Energy Services received $58mn through its subsidiary Fontis Energy in Mexico, initiating the repayment of arrears via a government-backed fund established to support investment projects and ensure supplier payments.
Washington ties the removal of additional duties to a verifiable decline in India’s imports of Russian crude, while New Delhi cites already-committed orders and supply stability for the domestic market.
The decline in imports and the rise in refining in September reduced China’s crude surplus to its lowest in eight months, opening the way for tactical buying as Brent slips below 61 dollars.
Chinese executive Zhou Xinhuai, 54, resigned from his post as chief executive of CNOOC Limited after holding the role since April 2022. A strategic reorganization is underway.
Texas-based SM Energy gains full support from its banking syndicate, maintaining a $3bn borrowing base and easing short-term debt maturity terms.
Halliburton and Aker BP have completed the first umbilical-less tubing hanger installation on the Norwegian continental shelf, paving the way for digitised offshore operations with reduced infrastructure.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.