China’s state-owned China National Offshore Oil Corporation (CNOOC) is sending a team of senior executives to Angola to discuss investment opportunities in oil exploration. The move aligns with Angola’s target to increase production to 1.18 million barrels per day (bpd), as well as growing interest from China in supporting strategic investments in the southern African nation. 

The upcoming Angola Oil & Gas (AOG) 2024 conference – taking place in Luanda on October 2-4 – will serve as a launchpad for future collaborations. With a strong international focus, the event brings global partners to Angola to discuss opportunities across the entire oil and gas value chain. As an important partner for the development of Angolan oil, Chinese public and private sector entities stand to benefit from participating and engaging with Angola’s latest oil and gas developments at this year’s AOG conference. 

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 sales@energycapitalpower.com. 

As one of the largest crude oil producers in sub-Saharan Africa, Angola has long-been a major oil supplier to China. While exports declined by 30% between 2020 and 2022 – owing largely to reduced output in Angola and increased imports from Russia – China has expressed interest in bolstering investment in Angola’s exploration and production landscape. 

A state visit by Angolan President João Lourenço to Beijing in March 2024 underscored growing potential for enhanced collaboration between the two countries in the fields of energy and infrastructure. Chinese President Xi Jinping announced support for Chinese companies investing in Angola, stating that the “Chinese side is willing to work with Angola to implement key infrastructure projects.” At the same time, CNOOC is set to engage in upcoming discussions around Angola’s Block 24 – a deepwater concession put on offer in the country’s latest 12-block tender – further highlighting opportunities for collaboration across the upstream industry.

Angola already represents the second-largest destination for Chinese foreign investment, and recent developments in its oil and gas industry are poised to bolster bilateral cooperation. In the last decade, Chinese firms have invested just shy of $14 billion in Angola, the majority of which has been directed towards the energy sector. Construction firm China National Chemical Engineering signed an MOU with Angola’s national oil company Sonangol in 2023 for the construction of the Lobito Refinery – set to come online in 2026 – while more than 100 Chinese exploration and production firms engaged with Angola’s latest licensing round.

Relying on imports for 72% of its oil needs, China stands to improve its own energy security by investing strategically in Angolan exploration – the benefits of which will be mutually felt. For China, diversifying investments has been the nexus of its foreign policy in recent years, as energy security becomes a top priority for the industrial giant. Expected declines in domestic oil output – projected at 0.8% in the short-term and even further after 2024 – due to mature oilfields are set to amplify China’s import dependency, affirming a strategic opportunity for Angola to ramp up exports to the country.

For Angola, Chinese investment will not only enable the nation to meet its production targets, but also stimulate infrastructure development across the entire value chain. Despite holding 9 billion barrels of proven oil reserves, Angola’s production has been declining since its 2 million bpd peak in 2010 due to aging oilfields and a lack of new investment. Chinese participation in Angola’s exploration scene would not only reverse this trend, but also bring much-needed capital to untapped basins both on- and offshore.