Angola's Oil Rig Count: A Comprehensive Overview

Angola is a leading oil producer in Africa, with an estimated 9 billion barrels of proven crude oil reserves. The country's oil industry is key to its economy, accounting for almost 75% of its revenues. In March 2024, Angola had 3 offshore oil rigs in operation, down from 9 a year ago. In 2022, the country had 8 active offshore rigs, with major companies such as TotalEnergies, Azule Energy, Chevron, and ExxonMobil pursuing drilling campaigns. Angola's oil and gas sector faces challenges, including high production costs and barriers to investment, but it continues to attract interest from international companies due to its vast resources and growth potential.

Angola's oil rigs are situated in its Block 14 concession, approximately 512 meters off the southern African country's Cabinda Coast

Angola has been dominating the sub-Saharan African oil market for a couple of years, with 8 active offshore rigs in 2022. The country's oil rigs are situated in its Block 14 concession, approximately 512 meters off the southern African country's Cabinda Coast. Block 14 is located west of Block Zero, which is another of Angola's offshore oil concessions. Block 14 is operated by the Cabinda Gulf Oil Company Limited (CABGOC), an affiliate of Chevron in Angola. CABGOC has a 31% interest in a production-sharing contract for Block 14. The company's net daily production averaged 89,000 barrels of liquids and 340 million cubic feet of natural gas in 2020.

Chevron recently announced its plans to invest $15 billion in new oil and gas projects to boost shareholder returns. This represents a more than 20% increase from the levels anticipated in 2021. Angola's oil industry is also supported by other major companies such as TotalEnergies, Azule Energy, and ExxonMobil, who are actively pursuing infill drilling campaigns and subsea tie-back schemes.

In addition to its presence in Block 14 and Block Zero, CABGOC also has interests in other oil and gas ventures in Angola. The company holds a 36.4% stake in Angola LNG Limited, which operates an onshore natural gas liquefaction plant in Soyo, Zaire province. This plant has the capacity to process 1.1 billion cubic feet of natural gas per day and is the world's first LNG plant supplied with associated gas.

In December 2021, CABGOC secured a 20-year extension of the Block Zero concession, located off the coast of the Cabinda province. The agreement extends the concession through 2050, with CABGOC serving as the operator with a 39.2% interest. Other partners in the Block Zero concession include Sociedade Nacional De Combustiveis De Angola, Empresa Pública (Sonangol EP) with a 41% interest, TotalEnergies EP Petroleum Angola ("Total") with a 10% interest, and Eni Angola Production B.V. ("Eni") with a 9.8% interest.

Angola had 8 active offshore rigs in 2022, with the same number scheduled for 2023

Angola is a country with a rich reserve of natural resources. As of 2022, it held an estimated 9 billion barrels of proven crude oil reserves. The country's petroleum industry is key to its economy, accounting for almost 75% of Angola's revenue.

In 2022, Angola had 8 active offshore rigs, with the same number scheduled for 2023. The country is a leader in oil production in Africa, recently surpassing longtime leaders Nigeria and Algeria. Angola's oil industry is dominated by major international oil exploration and production companies, including Total, Chevron, Exxon Mobil, and BP. These companies have been pursuing ultra-deep-water projects and new exploration and production campaigns, contributing to the country's high output.

One notable drilling production platform in Angola is the Benguela-Belize Lobito-Tomboco Platform, owned and operated by Chevron. This platform has a production rate of 220,000 barrels of oil per day (bpd) and is situated in water depths of 390 meters in the lower Congo Basin. It features Africa's first compliant piled tower, a fixed rig used for offshore oil production.

The Angolan government has implemented various reforms and incentives to boost investment in the oil sector and maximize the value of its natural resources. The National Agency for Petroleum, Gas, and Biofuels (ANPG) has planned licensing rounds to auction new blocks for exploration and production. The country's upstream oil and gas market is expected to grow by more than 1.5% during the forecast period of 2022-2027, with the recent increase in crude oil prices benefiting Angola's economy.

However, the oil and gas sector in Angola faces challenges, including high production costs, bureaucratic contract processes, and difficulties in securing financing. These factors have led to a substantial downsizing and withdrawal of companies from the sector. Despite these challenges, Angola remains a dominant player in the African oil market and is expected to continue driving drilling activity in the region.

Angola's oil industry is dominated by Chevron, Total, Exxon Mobil, and BP

Angola's oil industry is indeed dominated by Chevron, Total, Exxon Mobil, and BP, with all four companies having active rigs in the country. Angola has been dominating the market for a couple of years and had eight active offshore rigs in 2022, with the same number scheduled for 2023.

Chevron is involved in the Angola Liquefied Natural Gas (ALNG) Project, one of the largest energy projects on the African continent and the first of its kind in Angola. The project, located in Soyo, commercializes natural gas produced by Chevron and other crude oil operators. Chevron holds a 38.1% interest in the 87-mile pipeline, which transports natural gas from Blocks 0 and 14 to the Angola LNG Plant. Chevron also achieved a notable subsea engineering feat by drilling beneath the Congo River's submarine canyon as part of the Congo River Canyon Crossing Pipeline Project.

Exxon Mobil, the largest oil and gas company based in the US, has upstream operations in Angola, where it owns 0.4 million acres offshore. The company is vertically integrated across the entire oil and gas industry and has a chemicals division producing plastics, synthetic rubber, and other chemical products. Exxon Mobil has been criticised for its environmental record, including its role in the Exxon Valdez oil spill in Alaska, considered one of the world's worst oil spills.

Total, also known as TotalEnergies, will have three active rigs in Angola in 2023. The company is expected to execute an infill drilling campaign on its Egina and Akpo hubs on OML 130.

BP, as a member of the Oil and Gas Climate Initiative (OGCI), has committed to reducing greenhouse gas emissions and investing in low-emissions technology. While there is no specific mention of BP's current activities in Angola, the company is one of the world's major oil and gas companies and has a presence in various countries worldwide.

Angola's oil rigs have decreased from 9 to 3 since March 2024

Angola is a leading oil producer in Africa, with an estimated 9 billion barrels of proven crude oil reserves. Oil is a key sector for the Angolan economy, accounting for about 75% of the country's revenues. The country's oil production has fluctuated over the years, reaching a high of 2 million barrels per day in 2010, but currently sitting at approximately 1.16 million barrels per day.

The recent decrease in oil rigs could impact Angola's oil production and exploration capabilities. With fewer rigs, the country may see a decline in its oil output, which could have economic repercussions. However, it is important to note that the number of oil rigs is just one factor influencing oil production, and there may be other factors at play as well.

One of the notable oil rigs in Angola is the Benguela-Belize Lobito-Tomboco Platform, owned and operated by Chevron. This drilling production platform has a production rate of 220,000 barrels of oil per day and features Africa's first compliant piled tower. Angola has also been a focus for major international oil companies, including Total, Chevron, ExxonMobil, and BP, who have been actively pursuing drilling campaigns and exploring for new reserves.

The decrease in oil rigs since March 2024 could be a result of various factors, such as economic conditions, changing industry dynamics, or regulatory changes. It remains to be seen what impact this decline will have on Angola's oil industry and overall economy in the long term.

Angola's oil and gas sector is one of the most difficult to navigate due to industry barriers and macroeconomic threats

Angola's oil and gas sector is challenging to navigate due to various industry barriers and macroeconomic threats. Angola had eight active offshore rigs in 2022, with TotalEnergies, Azule Energy, Chevron, and ExxonMobil all operating in the country. While Angola holds an estimated 9 billion barrels of proven crude oil reserves, the sector faces significant obstacles.

One of the main challenges is the high production cost, averaging US$40 per barrel, deterring new entrants and limiting investments. The country also faces difficulties in securing financing for projects due to the lack of consistency from the concessionaire, impacting the ability of companies to obtain loans or equity from financial institutions. Additionally, the sector has seen a substantial downsizing and withdrawal of service companies, contractors, operators, and investors due to the challenging business environment.

Another barrier is the bureaucracy and slow processes involved in contract signing and renewal, leading to constant impediments and delays that hinder additional investments and contribute to the natural decline in crude production. Angola's dependence on imported refined petroleum, with an annual expenditure of over $2 billion, further complicates the sector. The country's underdeveloped transport infrastructure, including roads, railways, and imports, also poses challenges to the industry.

The business culture in Angola relies heavily on connections and recommendations, making it difficult for companies or individuals without the right network to advance their projects. High living costs in the country also contribute to excessive operating costs for companies, as they need to compensate expatriates with high salaries.

Despite these challenges, Angola's oil and gas sector remains crucial to its economy, accounting for almost 75% of the country's revenues. The recent rise in crude oil prices above US$100 has benefited the country's finances, and ongoing reforms in the sector aim to improve its competitiveness. However, the shift towards renewable energy sources could pose a threat to the forecasted market growth.

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