Angola Plans 100+ Oil and Gas Blocks Under New 25 year Exploration Strategy

Angola plans to open more than 100 oil and gas exploration blocks, mostly onshore, and reduce concession award times from six months to three as part of a proposed 25-year hydrocarbons development plan expected by the end of 2026.

The reforms would replace multiyear bidding rounds with a more flexible concession system and introduce licensing terms tailored to the risks and characteristics of different projects. The government intends to begin offering new blocks after adopting the plan.

Alcides Andrade, a board member of the National Petroleum, Gas and Biofuels Agency (ANPG), outlined the proposed changes, which aim to attract investment and encourage further exploration across the country's oil and gas sector.

Angola to tailor licensing terms to exploration risks

Under the proposed system, Angola would distinguish between mature or marginal fields, onshore resources and deepwater blocks when setting concession terms. The approach is intended to make projects more attractive to companies with different investment priorities and risk appetites.

Mature fields and smaller deposits may require different commercial arrangements from deepwater developments, which typically involve higher costs and more complex operations. Tailoring terms to individual project conditions could encourage companies to pursue resources that might otherwise struggle to attract investment.

The government wants increased exploration to support drilling activity and sustain production over the long term. However, faster concession awards will not automatically translate into higher output. Production growth will depend on discoveries, development decisions and the investment required to bring new resources online.

Angola currently produces about one million barrels of oil per day and has secured multibillion-dollar investment commitments from companies including TotalEnergies and Eni. The proposed reforms form part of efforts to maintain investor interest and develop additional resources as the country plans for the next phase of its petroleum industry.

Sonangol prepares for IPO and refinery expansion

The planned concession changes come as state-owned oil company Sonangol prepares for a potential initial public offering (IPO) and continues investing in its refining operations.

Speaking at African Energy Week in Cape Town on Wednesday, October 14, executive director Osvaldo Inácio reaffirmed the company's commitment to an IPO. As Sonangol marks its 50th anniversary, Inácio said the company is working to improve asset performance to provide future shareholders with satisfactory returns.

Refining is a key part of that strategy. In late September, Sonangol reported that construction of the Lobito refinery had reached approximately 26% completion following an investment of $1.6 billion. The facility is expected to begin operations in 2029.

The company has also reported progress on the first phase of the Cabinda refinery, which has a planned capacity of 30,000 barrels per day. Sonangol is also considering a petrochemical complex as it develops its downstream operations.

Long-term strategy targets sector growth

Angola's concession reforms and Sonangol's IPO preparations are separate initiatives, but both address the country's efforts to attract capital and improve the performance of its oil and gas industry.

The new licensing approach would change how companies access exploration opportunities, while Sonangol's plans focus on asset performance and investment in refining infrastructure.

The proposed 25-year strategy is expected to provide the framework for Angola's next phase of hydrocarbons development. Its impact will depend on whether more flexible concession terms translate into new exploration commitments, commercially viable discoveries and projects capable of sustaining production.