December 31, 2012Procurement Consulting – Brickwork Sourcing

Angola – Oil and Gas Sector BoomAngola – Oil and Gas Sector Boom

Brickwork India (Confidential)

Brickwork Sourcing

Angola produces over 1.9 million barrels per day (bpd) of oil and has recently overtaken Nigeria as Africa’s largest oil producer.

The start of the $9 billion Liquefied Natural Gas (LNG) Project in Angola is expected to increase oil production to over 2 million bpd.

The oil sector in Angola is capital intensive and lacks linkages to the real economy, while employing less than 1% of the total labor force.

In 2010, Angola was China’s second-leading source country for crude oil by volume, providing 790 million barrels.

Indian companies such as Reliance, Oil and Natural Gas Corporation, Bharat Petroleum, Hindustan Petroleum, and Indian Oil Corporation are not actively tapping Angola’s oil potential and focusing on other regions.

A consortium of Chevron, Sonangol, Bharat Petroleum, Total, and Eni have developed a $5 billion liquefied natural gas plant at Soyo to take advantage of Angola’s estimated 25 trillion cubic feet of natural gas reserves.

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Current Scenario

Angola is expected to record GDP growth rates of 8.2% and 7.1% in 2012 and 2013 respectively.

Despite remarkable economic growth in the past decade, Angola does not have industrial goods and services such as oilfield equipment, mining equipment, agricultural equipment, chemicals, aircraft, and food.

Apart from Angola’s oil supply, LNG will provide additional economic benefits as well. Currently, Angola is capable of supplying approximately 5 million tons of LNG for over 20 years.

According to Business Monitor International, Angola will provide almost 20% of Africa’s oil by 2014, and suggests that it has the greatest production growth potential.

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The Future Road

Mushrooming Companies in the Oil and Gas sector looking for sourcing options can look at India for help.

The main areas of interest for Angola would be the identification of suppliers of equipments for oilfields with modern technology.

More and more foreign investors are showing interest in Angola’s oil sector to lead the technology transfer.

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Growth Drivers and Opportunities

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13 April 2023

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