Angola to award 49 oil concessions by 2025
Forty-nine oil concessions will be awarded between 2019/2025 for exploration, research, development and production of hydrocarbons in Angola.
This forecast is included in the General Strategy for the Allocation of Petroleum Concessions, approved on February 18 of this year by the President of the Republic, João Lourenço, through Presidential Decree 52/19.
The General Strategy presents a distribution map, which provides for nine concessions this year, the same number in 2020, eight in 2021, and 12 and 11 concessions in 2023 and 2025, respectively.
The General Strategy for the Allocation of Petroleum Concessions, according to Presidential Decree 52/19, to which Angop had access today, aims to "ensure the substitution of reserves, promoting the exploration activity in a rational and appropriate manner, triggering appropriate measures to confirm the potential and provide enough crude oil to meet domestic refining capacity through economic weighting of exports versus imports.”
In four other decrees, dated 18 February (Dec-Presidential nº 54,55,56,57 and 58), Sonangol EP is granted rights to explore, develop, and produce liquid and gaseous hydrocarbons at Blocks 30, 45 , 46.47 and Block KON16.
According to the strategy, the award of oil concessions will be made through Public Tender, Limited Public Bidding and Direct Negotiation.
This General Petroleum Concession Attribution Strategy responds to the natural decline in oil production in Angola (1.49 million barrels per day) due to the lack of investment in the exploration, exploration and exploration segments in the last ten years. Angola has already produced 1.8 million barrels of oil per day.
According to declarations by the Minister of Petroleum and Mineral Resources, Diamantino de Azevedo, in May 2018, these investments were cleared and accumulated to the natural decline of the wells, which is why there is a drop in oil prices.
At the time, the government assumed that by the end of the legislature the sector will work so that oil production does not fall below 1.5 million barrels a day.
