The "Angola Oil & Gas" conference, held on October 2-3, 2024, in Luanda, gathered over 2,000 delegates from 41 countries to discuss strategies for boosting oil and gas production in Angola, a nation heavily reliant on its petroleum industry. The sector accounts for 95% of exports and 25% of the country's economy, generating over €26 billion annually.
As the backdrop of ongoing conflicts in Eastern Europe and the Middle East unfolds, Angola is poised to become a regional hub for oil and gas, with expectations of significant advancements to maximize its resources for the benefit of its population. However, economist Francisco Miguel Paulo warns that the Angolan oil sector faces numerous challenges, particularly in technology, producing only 1.1 million barrels per day compared to its previous peak of 2 million.
The decline in production is attributed to a lack of investment in new oil wells, with foreign companies withdrawing due to bureaucratic hurdles and infrastructure issues. Paulo emphasizes that Angola's heavy dependence on oil is detrimental to its economic policy, criticizing the government for failing to implement serious diversification programs since the end of civil war in 2002.
Journalist Mário Paiva echoes these sentiments, highlighting the need for coherent policies to diversify the economy, especially as oil prices decline. He notes that Angola risks losing investments to Namibia, where the business environment is perceived as more favorable. The need for economic and fiscal reforms is urgent to attract foreign investment beyond the oil sector.