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05 Apr 2024

3 Collaborative O&G Opportunities Between Angola and Brazil

3 Collaborative O&G Opportunities Between Angola and Brazil
Angola and Brazil are on the cusp of deepening their collaboration within the oil and gas sectors, driven by their sustained growth trajectories. While current partnerships have set a solid foundation, uncovering unexplored opportunities could significantly enhance bilateral relations and foster mutual development.

Angola’s premier event for the oil and gas industry – Angola Oil & Gas (AOG) 2024 – will explore how bilateral collaboration serves as a catalyst for development. The event offers a platform for engagement, dialogue and deals. The Angola-Brazil Chamber of Commerce is a partner of the event, underscoring a commitment to connecting Brazilian companies to Angolan projects.

AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; national oil company Sonangol; the National Oil, Gas and Biofuels Agency; the African Energy Chamber; and the Petroleum Derivatives Regulatory Institute, the event is a platform to sign deals and advance Angola’s oil and gas industry. To sponsor or participate as a delegate, please contact [email protected].

Ultra-Deepwater Exploration

Angola and Brazil rank in the top ten globally for ultra-deepwater reserves, highlighting a strategic opportunity for collaboration. Brazil boasts the largest recoverable reserves globally, with 97.6% of its oil production occurring offshore. The country’s Lula oil field – located in the Santos Basin – is the world’s biggest producing ultra-deepwater field, with peak production measured at one million barrels per day (bpd) (2021). Over 600 offshore wells are set to be drilled in the country between 2024 and 2030, with production expected to hit 4.9 million bpd by 2032 – 80% of which is derived in pre-salt deepwater fields.

Similarly, Angola’s deepwater production accounts for the majority of its output – primarily from the Lower Congo Basin. TotalEnergies’ Cameia-Golfinho deepwater development in Block 20/11 and Block 21/09 is estimated to hold 420 million barrels of oil, and the Golfinho field is one of seven deepwater discoveries made in the area. Additionally, Eni’s Agogo full field development – brought online just nine months after its discovery – projects a peak production of up to 42,000 bpd by 2024 and estimated reserves of 205 million barrels.

Going forward, Angola and Brazil are committed to attracting new investment in ultra-deepwater exploration. Angola’s recent 12-block tender – concluded in January 2024 – secured 53 bids, with the next round scheduled for 2025. Concurrently, Brazil’s recent licensing round – auctioned in December 2023 – featured 193 blocks up for bid. With both countries experiencing a surge in exploration activities, collaborative partnerships hold promise for mutual growth to accelerate project development.

Natural Gas Infrastructure

The burgeoning natural gas sector in Angola, alongside Brazil’s extensive experience in LNG, offers a promising opportunity for collaboration in infrastructure development. Angola began exporting LNG in June 2013, with ambitions to export non-associated natural gas by 2025. Export volumes experienced a significant surge between 2021 and 2022, largely attributable to the Angola LNG project, set to account for 90% of the nation’s natural gas output. Plans are underway to expand the infrastructure by linking additional offshore blocks to the Angola LNG Pipeline System. Moreover, Angola boasts a substantial LNG storage and processing terminal in Zaire Province, boasting a capacity of 360,000 cubic meters.

Brazil, on the other hand, has been investing in LNG since the 1990s and aims to develop a competitive LNG market with the New Gas Law. The country faces challenges such as long distances from offshore fields to the coast and limited gas pipeline infrastructure, presenting a strategic opportunity for investment and collaboration. While Angola’s LNG legislation is closely tied to specific projects such as the Angola LNG Project, the principles of regulatory oversight, stakeholder collaboration and safety standards are transferable. Collaboration between Brazilian and Angolan entities could involve knowledge exchange, capacity building and joint ventures to develop infrastructure tailored to Brazil’s offshore gas transportation needs.

Technical Training and Development

As the Angolan and Brazilian oil and gas sector expands, collaboration in capacity building can serve as a catalyst for market growth. In Angola, local content regulations – including Presidential Decree No. 271/20 – specify criteria for local goods and services usage and workforce development. Angola’s national oil company Sonangol is nearing the completion of its Research and Development Center, introducing specialized training in oil, gas, renewable energy and biofuels.

In Brazil, the country’s National Agency of Petroleum, Natural Gas and Biofuels (ANP) spearheads skill enhancement by managing fund allocation and initiatives like PRH-ANP – a program for specialized workforce training in oil and gas. By aligning efforts in technical training and development, Angola and Brazil can cultivate a skilled workforce capable of driving innovation and sustainable growth in the oil and gas sector.

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