Angola’s oil and gas sector is undergoing a far-reaching transformation, creating an attractive investment environment designed to encourage new entrants and revitalise production growth.
For more than five decades, the country’s output has been driven by its NOC, Sonangol, in partnership with major IOCs concentrating largely on shallow-water and deepwater developments. As indicated by its decision to withdraw from OPEC in 2023, Angola is focused on reversing recent declines in oil production, and sustaining and growing production above 1m b/d.
Reforming for growth
In recent years, the Angolan government and the regulator, ANPG, have introduced a series of pragmatic reforms to reverse production decline and drive the next phase of growth. Fiscal measures—including the 2024 Incremental Production Initiative—are encouraging reinvestment in mature assets and unlocking opportunities in marginal fields within existing producing blocks. This policy shift is reshaping the sector: with agile independents entering to revitalise shallow-water and onshore brownfield developments and explore untapped opportunities, while IOCs streamline portfolios to focus on deepwater prospects.
Revitalising mature assets
Since 2021, attracted by Angola’s positive investment climate, Afentra plc, a London-listed independent E&P, has built up a strategic footprint through a series of acquisitions, creating a balanced portfolio across both shallow offshore and onshore assets.
For independent E&Ps such as Afentra, Angola offers the right combination of a stable political environment, a government committed to reform, an established oil and gas industry, and vast untapped reserves. Together, these factors create opportunities for experienced independents such as Afentra to extend asset life, enhance recovery and improve stewardship while working closely with local partners. This approach supports Angola’s broader energy transition, which balances environmental responsibility with socioeconomic development, creating long-term value for partners and communities.
Offshore, Afentra has acquired material non-operated interests in producing fields located within blocks 3/05 and 3/05A and has recently been awarded operatorship of the adjoining Block 3/24. The partnership on blocks 3/05 and 3/05A, operated by Sonangol, is focused on the redevelopment and optimisation of mature assets that have been operational since the 1980s. Through infrastructure upgrades, well interventions and emissions-reduction initiatives, the assets are being readied for the next phase of production growth. These efforts are already delivering results, with the average gross production increasing by around 25%, 140% reserves replacement and improved operational uptime.
Beyond mature fields, Angola’s upstream industry is also witnessing renewed exploration momentum—with recent deepwater discoveries by major operators and growing interest in the onshore.
Unlocking the onshore Kwanza Basin
The onshore Kwanza Basin, long underexplored and underinvested, represents one of Angola’s most promising frontier opportunities for short-cycle production growth. In contrast to neighbouring onshore basins such as the Gabon and the Lower Congo basins, the onshore Kwanza Basin has remained a proven but largely untapped hydrocarbon province, its development delayed by decades of civil unrest. Today, it offers early-stage opportunities with significant upside potential.
With its first-mover advantage and partnership-driven approach, Afentra is well positioned to support Angola’s efforts to boost production. The company holds non-operated interests in KON15 and KON19 and will shortly assume operatorship of KON4. The KON4 block includes the Quenguela Norte field—the largest onshore Kwanza discovery to date—estimated to hold more than 200m bl of oil in place, which Afentra plans to redevelop and bring back into production.
A just energy transition for Angola
Angola’s upstream renewal offers far more than production gains. The participation of independents such as Afentra brings operational efficiency, disciplined capital investment and a commitment to local value creation. Through technology transfer and the growth of domestic supply chains, independents can play a central role in strengthening Angola’s energy ecosystem.
Redeveloping mature fields and revitalising onshore assets not only sustains output but also creates employment, enhances technical expertise and contributes to broader economic resilience. Moreover, by embedding sustainability into its operations—from emissions reduction and responsible asset stewardship to engagement with local partners—Afentra is helping ensure that Angola’s energy renewal delivers lasting benefits for its people.
Positioned for the next phase of growth
Supported by a pragmatic and collaborative government and regulator, Angola is building a strong and investable energy future. While IOCs continue to pursue deepwater potential, independents have an opportunity to complement their efforts by partnering with IOCs, Sonangol and local partners in the shallow-water and onshore domains. Angola’s reform momentum continues to foster close collaboration between independents, Sonangol and the regulator—a powerful example of how progressive policy and capable partners can revitalise mature assets, unlock value from existing resources and strengthen the country’s energy resilience.
Angola is charting an energy future that combines the responsible use of its natural resources with socioeconomic development, demonstrating how collaboration across the industry can deliver sustainable value for all stakeholders.
Paul McDade is CEO of Afentra plc. To read Outlook 2026 in full, click here.
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