Report

Angola Oil And Gas Upstream Market Analysis

The Angola Oil And Gas Upstream Market is expected to grow from USD 4.64 billion in 2025 to USD 4.73 billion in 2026 and is forecast to reach USD 5.2 billion by 2031 at 1.91% CAGR over 2026-2031.

Current momentum within the Angola oil and gas upstream market is anchored in deep- and ultra-deepwater final investment decisions, a modernized fiscal regime introduced by the National Agency for Petroleum, Gas and Biofuels (ANPG), and Angola's December 2023 withdrawal from OPEC, which removed quota ceilings and allows output to target 1.3 million barrels per day by 2025. A flexible production policy, accelerated gas monetization, and the widespread deployment of high-pressure subsea technology have pushed project breakevens below USD 40 per barrel across several fields, protecting the Angola oil and gas upstream market against moderate price volatility. Super-major re-entries-most notably Shell's 2024 return-and Chevron's fresh exploration acreage underscore renewed confidence in Angola's basin prospectivity, while local content rules under Law 271/20 create supply-chain openings for domestic service providers.

Angola Oil And Gas Upstream Market Trends and Insights



Licensing-Round Momentum Attracting Super-Majors

Angola's 2024 onshore licensing round generated 53 bids from 22 companies for 12 blocks, a 340% increase compared to 2019, signaling revived geological confidence and transparent acreage terms. Shell's re-entry after a two-decade hiatus came through an exploration agreement covering deep- and ultra-deepwater prospects, adding brand-name validation to the Angola oil and gas upstream market. Competitive tension has lifted signature-bonus expectations to USD 2.8 billion across 2025-2027, earmarked for infrastructure and training. Presidential Decree 8/24 offers incremental production incentives and quicker field-plan approvals, compressing the approval cycle to eight months. Chevron's preliminary Block 33/24 agreement confirms its appetite for frontier acreage, where 3D seismic quality has improved markedly after 2023. Licensing enthusiasm is forecast to unlock new reserves that offset mature-field declines and reinforce supply-security projections for the Angola oil and gas upstream market

Deep-and Ultra-Deepwater FIDs Accelerating Near-Term Output

TotalEnergies sanctioned the USD 6 billion Kaminho project, targeting 70,000 barrels per day of first oil in 2028 and employing 20,000 psi wellheads, along with all-electric subsea trees that reduce operating costs by 15%. The Agogo FPSO, installed six months ahead of schedule in February 2025, underscores the execution efficiency that shortens payback cycles. Saipem's USD 3.7 billion EPCI award is expected to create 2,500 local jobs, solidifying Angola's position as a fabrication hub. Combined deepwater projects are expected to add 300,000 barrels per day by 2028, helping to cushion the 12-15% annual decline at legacy fields. Technological advancements in dynamic positioning and high-pressure risers now enable access to water depths beyond 2,000 m, where pre-salt resources could hold 10 billion recoverable barrels, according to ANPG.AO. The acceleration of capital commitments enhances near-term revenue visibility, sustaining the Angola oil and gas upstream market during price swings.

Rapid Decline of Mature Deep-Water Fields

Legacy assets at Girassol, Dalia, and Pazflor now yield 280,000 barrels per day, compared to 500,000 barrels per day at peak, despite ongoing water-injection and gas-lift programs. Decline rates of 12-15% per year drive continuous spend on infill drilling and workovers that raise per-barrel costs by 25-30% relative to greenfields. Advanced reservoir tools-such as 4D seismic, smart completions, and data-driven well placement-are mitigating losses but require specialist vendors and higher capital expenditures (capex). Operators face capital allocation dilemmas between sustaining brownfield output and greenfield development, especially when prices hover near USD 50 per barrel. Failure to offset declines could erode Angola's oil and gas upstream market revenues, emphasizing the urgency for fresh reserves.

Other drivers and restraints analyzed in the detailed report include:

Fiscal and Regulatory Reforms Through ANPG SetupExit from OPEC Providing Production-Quota FlexibilityHigh Capex Requirements for Ultra-Deep Projects Under Price Volatility

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Offshore assets generated 96.85% of the 2025 value, equating to USD 4.49 billion of the Angola oil and gas upstream market size, while onshore represented USD 0.15 billion. Twelve floating production, storage, and offloading vessels, along with extensive subsea tie-backs, underpin efficient offshore expansions that lower marginal development costs to under USD 40 per barrel on several hubs. Onshore, however, exhibits a 2.72% CAGR outlook, buoyed by 2024 licensing that attracted 53 bids for 12 blocks, signaling rising interest in the Kwanza and Namibe basins. Lower onshore development costs of USD 25-35 per barrel provide a hedge against price dips.

The offshore segment of the Angola oil and gas upstream market benefits from ultra-deepwater breakthroughs, such as Kaminho, whose subsea processing slashes operating expenses (opex) by 15%, and from de-risked satellite tie-backs that monetize discoveries under 150 million barrels of oil equivalent (MMbbl). Conversely, onshore developments face infrastructure gaps- limited pipeline corridors and grid constraints- that necessitate joint public-private investment to unlock their full potential. Nevertheless, recent ANPG geological surveys indicate 2.5 billion recoverable barrels of tight oil in the onshore Kwanza Basin, elevating its strategic relevance over the forecast horizon.

Crude oil supplied 90.10% of 2025 revenue, or USD 4.18 billion of the Angola oil and gas upstream market size, supported by premium low-sulfur grades such as Cabinda and Girassol that enjoy favorable refinery yields. Field declines necessitate unceasing secondary-recovery investments, yet Angola's 8.4 billion-barrel reserve base offers a platform for medium-term stability. Natural gas, at USD 0.46 billion, is on a 6.28% CAGR path, stimulated by the Sanha Lean Gas Connection and the Northern Gas Complex, which will lift LNG feedstock to full 5.2 MTPA by 2025.

Angola's pivot toward non-associated gas meets global demand for transition fuels and diversifies income streams, mitigating oil-price dependency. Gas export receipts are projected to hit USD 1.2 billion annually by 2027, adding resilience. Although oil dominance will persist, the expansion of gas sales recalibrates the Angola oil and gas upstream market toward a balanced hydrocarbon mix.

The Angola Oil and Gas Upstream Market Report is Segmented by Location of Deployment (Onshore and Offshore), Resource Type (Crude Oil and Natural Gas), Well Type (Conventional and Unconventional), and Service (Exploration, Development and Production, and Decommissioning). The Market Sizes and Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

TotalEnergies SE Sonangol EP Azule Energy ExxonMobil Corporation Chevron Corporation BP plc Eni SpA Equinor ASA Petronas Sinopec (E&P Angola) Somoil SA Corcel plc Afentra plc Oando PLC (OER) Yinson Holdings Berhad Saipem SpA Schlumberger NV Baker Hughes Co. Subsea 7 SA Halliburton Co.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support