Angola needs to deepen its oil exploration efforts, especially in its marginal fields, in order to stem a decline in fuel production, African Energy Chamber (AEC) President for Angola, Sergio Pugliese has said.
The Chamber, the continent’s voice for the ongoing change and progression in the African energy industry, recently named Pugliese as the AEC’s boss for Angola.
His appointment comes at a time when production levels in Angola are expected to soar by 2020 following the country’s restructuring, which includes the reorganization of the state oil company Sonangol.
“From the passing of dedicated gas regulations, the promotion of marginal fields, to the organization of a new oil-licensing round overseen by the newly-created Petroleum Agency, Angola has made a tremendous comeback as one of Africa’s hottest oil & gas frontier,” NJ Ayuk, CEO of Centurion Law Group and Executive Chairman at the Chamber, said in an earlier statement this May.
In addition to a drastic revision of Angola’s legislation related to oil and gas, the government’s intent is to spur growth in the sector, encouraging exploration in development areas, improving operation efficiencies, reducing taxes, empowering the private sector, and attracting investors.
Since the 2017 elections, Angola’s oil and gas sector has been featured in numerous conferences aimed at linking top government officials with the global energy industry.
Angola is ranked second largest oil producing country in Sub-Saharan Africa and an OPEC member with an output of approximately 1.55 million barrels of oil per day and an estimated 17,904.5 million cubic feet of natural gas production.
“Angola is reforming is very fast and the need to provide accurate information and guidance for investors doing business in Angola is growing,” Pugliese explained in a recent official announcement.
In his statement, he noted that investment into local content development needs to be channeled and supported by strong regulations.
“As more foreign investors get into the market, the country is currently working on a new regulatory framework to promote the development of the Angolan content and build domestic capacities. At the moment, several pieces of legislation touch on local content and there is a definitive need to make our local content framework more efficient and competitive,” Pugliese continued.
Pugliese mentioned that a draft presidential decree on local content has been in the works this year and is expected for release and public consultation this month. He added that the country’s President is going to unveil the government’s oil and gas agenda.
“As the largest oil lobby in Africa, we will be working closely with the government and the oil industry on this. The Oil industry and Angola needs a champion and we will be that champion,” he said.