Angola is shifting its energy strategy toward natural gas as oil production stagnates, despite its exit from OPEC.
Azule Energy, a BP-Eni joint venture, recently made a significant discovery at the Gajajeira-01 well, estimated to hold over one trillion cubic feet of gas and 100 million barrels of condensate.
CEO Adriano Mongini said a second exploration well could be drilled within two years, with nearby infrastructure supporting development.
The Government projects gas output to rise by more than 20% in five years, fuelled by projects such as Chevron’s Sanha Lean gas initiative and the Azule-led New Gas Consortium, which will launch the Quiluma and Maboqueiro fields by late 2025. The push aims to boost exports to Europe and Asia, while supporting Angola’s industrialization agenda through favourable investment terms.
Natural gas exports rose 19.1% in the second quarter to 1.35 million metric tons, with India and Spain as key buyers, though revenues remain far below the \$5.6 billion generated from crude sales. Angola expects \$60 billion in oil and gas investments over the next five years, targeting 23 exploration wells, including 11 offshore. While recent projects like Azule’s Agogo FPSO and TotalEnergies’ capacity boost have temporarily lifted oil output, analysts warn production will drop to just above one million barrels a day by 2027 and decline further post-2030 unless investment is sustained. Gas, however, is seen as the country’s long-term growth engine, with officials eyeing it as a “litmus test” for monetising Angola’s vast untapped reserves.