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Angola’s oil and gas sector is currently witnessing a remarkable influx of investments from around the world, according to a recent report by Deutsche Bank. The recent increase in oil prices has played a significant role in attracting these investments. As the second-largest oil producer in Africa, Angola possesses substantial reserves, estimated at approximately nine billion barrels of proven crude oil and 1.6 trillion cubic feet of proven natural gas reserves.

Deutsche Bank’s Head of Natural Resources Finance UK, Danai Koutra, highlighted the significant investments pouring in from major oil companies. This interest is further supported by the Organization of Petroleum Exporting Countries (OPEC) monthly oil market report, which named Angola the top African crude oil producer in April, with a daily crude production of 1.06 million barrels.

It cited the example of Azule Energy, a joint venture between BP and ENI, which has become Angola’s largest independent equity producer of oil and gas.

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The report also emphasized that these new investments and financial support from banks align with Angola’s objectives in terms of Environmental, Social, and Governance (ESG), as well as its energy security goals. It cited the example of Azule Energy, a joint venture between BP and ENI, which has become Angola’s largest independent equity producer of oil and gas. With significant resources totaling two billion barrels equivalent and expected growth to reach 250,000 barrels equivalent per day (boe/d) over the next five years, Azule Energy is set to play a pivotal role in Angola’s energy sector.

Koutra also underscored the oil and gas industry’s potential to contribute to the global transition towards net-zero emissions. He emphasized the industry’s capacity to offer investment opportunities and generate employment, thus driving progress towards environmental sustainability.

In addition to its focus on oil and gas, Angola has made notable strides in diversifying its energy sources. The country currently derives over half of its energy from hydroelectric power, thanks to its extensive network of waterways. Furthermore, Angola is strategically positioned to harness its onshore and offshore wind resources. It has expressed interest in partnering with European companies renowned for their expertise in wind energy projects, particularly those based in Europe, to further develop this sector.

Recognizing the need to develop other sectors of the economy, Angola has substantial untapped potential in agriculture. Despite having an estimated 35 million hectares of arable land, only around 10% of it is currently under cultivation. This presents significant opportunities for further investment and lending to add value to the agricultural sector, which currently contributes only around 10% to Angola’s GDP.

To support Angola’s economic growth, Banco de Desenvolvimento de Angola, a public financial institution, recently facilitated a €56.9 million export agency-covered financing for a private sector project in the country. Deutsche Bank played a crucial role as the sole arranger, agent, and lender in this initiative. Werner Schmidt, Head of Structured Trade Export Finance at Deutsche Bank, highlighted the importance of this production facility in transitioning Angola from a reliance on commodity production to higher-value food processing. This transition would not only reduce food imports but also stimulate local economic activity along the value chain.

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