Sonangol unveils strategy to double operations

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Luanda, Angola – Angola’s state-owned oil company, Sonangol, has unveiled ambitious plans to significantly increase its crude oil production and sales by 2025. With a series of major projects underway, the company aims to enhance its contribution to the nation’s economy while positioning itself as a key player in the global energy market.

AfricaHeadline Reports Team
editorial@africaheadline.com 

Sonangol has set its sights on raising its share of national oil production to 10% by 2027, up from the current 3-4%. This goal translates to an output of approximately 80,000 barrels per day (bpd) from its operated concessions. Several strategic initiatives are expected to underpin this growth:

Located offshore Angola, the Punja field is on track to begin production in 2024, with peak output forecasted at 48,372 bpd by 2025. The field forms part of Sonangol’s strategy to maximise resources from existing fields.

Scheduled to commence operations in April 2025, the Cabinda Refinery will process 30,000 bpd of crude oil in its initial phase, meeting 5-10% of Angola’s fuel demand.

This project, developed in partnership with Gemcorp, is a cornerstone of Angola’s push towards energy self-sufficiency and reducing reliance on imported fuels.

In collaboration with Azule Energy, the Agogo West Hub project involves drilling 36 new wells and deploying a Floating Production Storage and Offloading (FPSO) unit with a capacity of 120,000 bpd.

Production is expected to commence by late 2025, further solidifying Angola’s position as a leading oil producer in Africa.

Analysts predict a global oil supply surplus by 2025, which could place downward pressure on prices. Brent crude is projected to average between $73 and $76 per barrel, compared to the current average of $80. Sonangol’s strategic focus on long-term contracts and diversifying its customer base aims to mitigate market volatility and maintain revenue stability.

These projects are expected to deliver substantial benefits to the Angolan economy, creating jobs and driving local development. The Cabinda Refinery alone is anticipated to generate approximately 1,500 construction jobs and 500 permanent roles once operational.

Sonangol’s initiatives will also reduce Angola’s dependency on imported fuels, improving the trade balance and enabling the country to retain more of the value derived from its natural resources.

Aligned with global sustainability goals, Sonangol is adopting technologies to minimise its environmental impact. The company has reiterated its dedication to transitioning towards cleaner energy sources while maintaining its role as an essential economic driver.

Under the leadership of Sebastião Gaspar Martins, Sonangol is poised to play a pivotal role in Angola’s economic transformation.

These strategic investments reflect a clear vision of boosting energy security, fostering local development, and positioning Angola as a vital player in the global oil market. As 2025 approaches, all eyes are on Sonangol’s ability to deliver on its ambitious plans.