Angola's energy transition 'should be harmonised' with oil business

Angola’s energy transition ‘should be harmonised’ with oil business

Angola’s secretary of state for oil and gas said yesterday that the energy transition should “be harmonised” with oil and gas exploration in the country, stressing that the industry also created business opportunities for local service companies

Barroso, who was speaking in Luanda at the opening of the second Angola Oil and Gas Technology and Services Conference (AOTC), organised by the Association of Companies Providing Services to the Angolan Oil Industry (AECIPA), gave assurances that the energy transition “is a concern for Angola” – which he described as a country that favours the production and consumption of energy from renewable sources, particularly hydroelectric dams.

“However, this goal should be harmonised with continued oil and gas exploration for the sustainability of its economy and to fund the efforts of this transition,” he argued.

According to the secretary of state, local service companies “may play a fundamental role, developing and bringing to the national market latest-generation equipment and technology that ensures more efficient oil operations and with less greenhouse gas emissions” and which can help mitigate the effects of the sharp decline in production.

At the same time, the energy transition should also provide an opportunity for international technology companies to create joint ventures with Angolan partners “in order to monitor and benefit from the business opportunities that should arise around the value chain” of this industry, from upstream exploration, drilling and production to downstream transport, distribution and marketing.

Barroso also addressed the issue of incorporating local content in the oil and gas sector, citing the recently published list of requirements that allow commercial companies, particularly those incorporated in Angola, to provide services to the industry.

“The foundations have been laid so that national businesspeople can compete and participate in tenders for the supply of materials and equipment, goods and services based on the systems defined in the local-content legislation,” he said, noting that 232 local-content companies are now registered in Angola that could sustain over 16,000 jobs, mainly for local staff and technicians.

He also alluded to the effects of the pandemic on the sector that was forced to implement severe restrictive measures, including limiting people’s movements, which in turn left many companies working “in conditions of extreme hardship and with limited resources,” as drilling stopped in March and April of last year.

Still, he stressed the positive attitude of the industry, particularly service providers, “who showed adaptability, understanding, but above all resilience.”

Angola is Africa’s third-largest oil producer and is heavily dependent on revenues generated by the export of crude.

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