Regulatory reforms and downstream investment are expanding local production, strengthening industrial capacity and attracting international investors.
What mission guides your strategy for Angola’s resource sectors?
Our work is guided by Angola 2050 and the government’s development plans, which define our programs, objectives and targets. In upstream oil, our priority is to maintain production above one million barrels per day during this term and beyond. Downstream, we are expanding fuel storage and refining capacity, improving distribution and using the sector to support economic diversification. Our mining strategy follows the same principle. Angola is known principally for diamonds, but our potential extends to iron ore, copper, rare earths, lithium, niobium, gold and ornamental stone. We want to increase production while strengthening domestic processing capabilities, so that more of the value generated by these resources remains within Angola. Across both sectors, our mission is to create the legal, fiscal and contractual conditions necessary to attract national and international private investment. We also want to participate actively in the energy transition, ensuring that it is fair, inclusive and takes into account the interests of producing countries.
How have reforms improved the business and investment environment?
One of our most important reforms was changing the governance model by separating regulation from commercial operations. Previously, Sonangol performed several functions simultaneously. Today, dedicated agencies oversee upstream petroleum and gas, downstream petroleum activities and mineral resources. This allows Sonangol to focus on its operations and its evolution into an energy company, while Endiama can devote greater attention to the downstream diamond industry. We have also strengthened the legal framework through measures covering marginal fields, development areas, gas monetization and incremental production. After several years without licensing new oil blocks, we have licensed approximately 72 blocks, 42 of which already have contracts. These investments should lead to new projects and contribute to maintaining national production. Together, these measures strengthen institutional oversight, improve geological knowledge and provide greater security for long-term investment.
How can natural gas contribute to Angola’s economic diversification?
The gas law and gas management plan have encouraged operators to recognize gas as an economic resource in its own right.
Until recently, Angola’s gas production came essentially from oil-associated gas. In November 2025, we began producing and treating non-associated gas for the first time, through projects developed by the New Gas Consortium. Together with associated-gas initiatives, including gas connection and compression projects, this has strengthened the sustainability of supply to the Angola LNG plant. An important example of the wider economic benefits is the Amufert project in Soio, which will produce ammonia and urea. These products are essential for fertilizer manufacturing. Once operational, the facility should allow Angola to replace imports, supply the domestic market and export surplus production. This will help increase agricultural productivity, strengthen food security and reduce expenditure on imported products. This demonstrates how hydrocarbons and mineral resources can contribute directly to other sectors of the economy.
What progress is being made in refining and downstream industrialization?
Our objective is to maximize the value of every barrel of oil produced in Angola.
We upgraded this facility, reducing waste and increasing gasoline production by approximately three times. We also completed the first phase of the Cabinda refinery, providing 30,000 barrels per day of capacity. Studies are underway for a second phase that will add another 30,000 barrels. Another major initiative is the Lobito refinery, designed for 200,000 barrels per day. We reviewed the original project to reduce capital expenditure, shorten construction time and improve environmental performance. Construction has resumed, and we expect production to begin by the end of 2029. We are also reviewing the Soio refinery project and studying petrochemical opportunities associated with Lobito. Hydrocarbons provide raw materials for thousands of products, and our intention is to develop more of these value chains domestically. In addition, the Barra do Dande ocean terminal has considerably increased onshore fuel storage capacity, reducing the country’s reliance on storing petroleum derivatives aboard vessels at sea.
How is Angola expanding domestic processing and employment opportunities in mining?
We want to move beyond exporting raw materials and increase the value added within Angola. Diamonds provide an important example. We subsequently developed the Saurimo Diamond Development Hub, close to two of our principal diamond mines, Catoca and Luele. The hub provides infrastructure and services that allow private investors to establish cutting and polishing factories.
The project also includes technical and vocational training centers. This ensures that investment contributes not only to industrial production but also to skills development and employment. We have introduced legislation enabling smaller, predominantly Angolan entrepreneurs to participate in semi-industrial diamond mining. A similar approach is being pursued in ornamental stone. Angola produces high-quality marble and granite, and we are developing a processing hub in Namibe to encourage domestic manufacturing of intermediate and finished products. Our ambition is to create industrial ecosystems in which mineral extraction supports local businesses, specialized employment and a stronger national manufacturing base.
“We need a balanced energy mix in which fossil fuels and different renewable sources coexist.”
What opportunities are emerging beyond diamonds and traditional mineral exports?
Angola has considerable potential in minerals that have not yet been developed on a large scale. We are advancing a rare earths project in Longonjo, in Huambo province, alongside projects involving niobium, copper, lithium and other metallic minerals. Iron ore offers another important opportunity. Angola previously produced and exported iron concentrates, and we are working with a Turkish private company to reactivate the Cassinga project, incorporating steel production. Our objective is not simply to resume mining and exports, but to manufacture steel in Angola. We are studying the use of natural gas in iron reduction, which could also improve the project’s environmental performance. International interest in our mining sector has increased considerably. Major companies, including Rio Tinto and other international operators, are undertaking exploration activities in Angola. Their presence reflects growing confidence in Angola’s geological potential. That is why geological knowledge, investment stability and long-term planning are essential.
What makes Angola competitive for international energy investors?
The strongest evidence is the behavior of companies already operating in the country. International oil companies continue to maintain their assets, acquire new blocks and increase investment, including in deepwater exploration. We are seeing interest from other international operators, including Petrobras, as well as smaller independent companies. These independent operators have an important role, particularly in mature fields. As larger companies adjust their portfolios, smaller companies can acquire these assets and continue developing their production potential. We are also encouraging onshore exploration and preparing a new five-year licensing program, following the conclusion of the current program in 2026. Angola still offers significant opportunities for discoveries, both offshore and onshore. Our responsibility is to maintain a stable investment environment, with legal and fiscal security, while continuing to improve the conditions for companies operating here. We value our existing partners and welcome new investors prepared to contribute capital, expertise and technology.
How is Sonangol preparing for the energy transition?
We have given Sonangol the responsibility of evolving from an oil company into a broader energy company. This means continuing to develop hydrocarbons while investing in technologies and resources that will become increasingly important in the future.
Sonangol is already participating in solar energy projects, including the Caraculo facility in Namibe province, and is pursuing additional renewable energy investments. It is also preparing biofuel projects and studying the development of a biorefinery, with the ambition of producing biodiesel and eventually sustainable aviation fuels. We are also developing a research and development center in Cuanza Sul. Initially focused on hydrocarbons, its mandate has expanded to include biofuels, renewable energy and critical minerals. At the same time, we are encouraging greater energy efficiency in conventional oil production. Projects such as the Agogo platform and the development of Kaminho incorporate technologies intended to reduce emissions and improve environmental performance. Our approach is to participate in the transition through concrete projects while continuing to develop the resources that remain essential to the economy.
How do you see Angola’s role in the global energy transition?
Angola has all the conditions to become an important participant in the energy transition, but we believe it must be fair, inclusive and responsive to the circumstances of producing countries.
We need a balanced energy mix in which fossil fuels and different renewable sources coexist. The world will not operate exclusively on renewable energy in the coming decades, and hydrocarbons will remain necessary for numerous industrial applications. We must also recognize that the energy transition itself depends on mineral resources. Solar panels, batteries and other technologies require minerals, while petroleum products remain present in many aspects of everyday life. This is particularly relevant in sub-Saharan Africa, where millions of people still lack adequate access to electricity. We need solar, wind and hydropower, but we must also use our existing resources to improve living standards, support industrialization and strengthen economic development.
At the same time, we recognize the seriousness of environmental challenges. Our objective is to continue developing hydrocarbons and minerals with increasing attention to sustainability and emissions reduction. Angola has its own vision and strategy. We are not waiting for others to define our path. We welcome international partners willing to work with us on a mutually beneficial basis, respecting our priorities and contributing to the country’s long-term development.
Produced independently of the TIME Africa newsroom by Penresa.