Eni and BP’s Joint Venture Commits Additional $5 Billion Investment in Angola’s Energy Sector

Azule Energy, the 50-50 joint venture between Italian energy giant Eni and British multinational BP, announced plans to invest an additional $5 billion in Angola over the next four to five years. This landmark commitment, revealed during the Angola Oil & Gas Conference 2025 in Luanda, matches the total investments made since the joint venture’s establishment three years ago and signals renewed confidence in the former OPEC member’s oil and gas sector.

The announcement comes as Angola celebrates 50 years of independence and as the country implements sweeping regulatory reforms designed to attract international investment following its strategic exit from OPEC in January 2024.

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Strategic Investment Framework and Production Targets

Speaking at the conference, Eni Chief Operating Officer Guido Brusco confirmed that the investment program will encompass both new exploration projects and enhancements to existing infrastructure. “We have in the next four to five years 18 wells to be drilled”, Brusco stated, “on which two-thirds are operated by Azule and one-third operated by others.”

The drilling campaign represents a critical component of Angola’s broader strategy to maintain oil production above one million barrels per day, a benchmark that has become increasingly challenging as the country’s mature offshore fields experience natural decline. Current production levels have fallen below this threshold for the first time since Angola’s OPEC exit, making new investment crucial for production stabilization.

Eni CEO Claudio Descalzi emphasized the scale of the commitment during the conference opening ceremony, stating: “Since its inception, Azule Energy has invested more than $5 billion in Angola”, and during the next few years, we plan to invest an additional $5 billion.”

Angola’s Post-OPEC Transformation and Regulatory Modernization

Angola’s departure from OPEC in December 2023 marked a pivotal moment in the country’s energy strategy. The decision followed prolonged disputes over production quotas that Angola’s leadership believed constrained the country’s ability to maximize its hydrocarbon potential. Minister of Mineral Resources, Petroleum and Gas Diamantino Azevedo explained the rationale: “Angola currently gains nothing by remaining in the organisation and, in defence of its interests, decided to leave.”

The post-OPEC period has seen encouraging signs of recovery. Angola’s average daily oil production hit 1.134 million barrels in the first three quarters of 2024, representing a 4% increase compared to 2023 production levels. This improvement has been attributed to government stabilization measures, commissioning of new oil wells, and strategic interventions in various concessions.

The transformation extends beyond production metrics to fundamental regulatory reform. Under President João Lourenço’s leadership, Angola has overhauled its regulatory regime to attract international investment. Key reforms include the creation of the National Agency for Petroleum, Gas and Biofuels (ANPG), which has assumed regulatory oversight from state-owned Sonangol, improving transparency and operational efficiency.

Azule Energy’s Strategic Position and Recent Achievements

Azule Energy has emerged as Angola’s largest independent equity producer of oil and gas since its formation in 2022. The joint venture holds 2 billion barrels equivalent of net resources and maintains stakes in 16 licenses, including six exploration blocks, positioning it as a dominant force in Angola’s upstream sector.

The company achieved a significant milestone in July 2025 with the Agogo Integrated West Hub Development achieving first production. This state-of-the-art project, featuring a fully electrified floating production, storage, and offloading (FPSO) vessel, has a production capacity of 175,000 barrels per day and was completed almost one year ahead of schedule.

BP CEO Murray Auchincloss highlighted the technical sophistication of recent projects: “Five weeks ago, we saw first oil from the Agogo FPSO”, he noted. “It was a complex project – state of the art and fully electrified. Azule has lifted 30,000 tons of equipment onto the vessel. Despite this complexity, the team achieved project startup almost one year ahead of schedule.”

Expanding Into Natural Gas and Diversification

Beyond traditional oil production, Azule Energy is pioneering Angola’s natural gas sector through the New Gas Consortium (NGC) project, representing the country’s first non-associated gas development. This initiative addresses Angola’s growing domestic energy needs while positioning the nation as a potential LNG exporter in the global market.

The NGC project gains additional significance in the context of Angola’s gas-driven growth strategy, as outlined in the 2025 Gas Master Plan. The plan targets 20% gas production growth by 2030, supported by major discoveries including Azule Energy’s Gajajeira-01 discovery, which revealed over one trillion cubic feet of gas and 100 million barrels of condensate.

Regional Context and TotalEnergies’ Parallel Commitments

The Azule Energy announcement occurred alongside significant commitments from other major operators. TotalEnergies confirmed a $3 billion investment for its Dalia Life Extension project, demonstrating continued confidence in Angola’s deepwater infrastructure despite the challenges facing mature fields.

TotalEnergies’ presence in Angola extends beyond the Dalia project to include operations in Block 17 and its four major hubs (Girassol, Dalia, Pazflor and CLOV), Block 32 and its Kaombo development hub, and Block 0. The company recently achieved a significant milestone with the Final Investment Decision for the Kaminho project in May 2024, a $6 billion deepwater development featuring an all-electric FPSO designed to minimize greenhouse gas emissions.

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Mozambique LNG Developments and Regional Implications

The energy investments in Angola occur within a broader regional context of LNG development. Eni’s activities extend beyond Angola to neighboring Mozambique, where the company became the first LNG exporter from the country in 2022 with its Coral South floating platform.

Mozambique’s government recently approved the development plan for Eni’s Coral Norte floating LNG platform in April 2025, paving the way for final investment decisions. Once operational, this second platform will produce 3.5 million metric tonnes of LNG annually for 30 years, effectively doubling existing LNG production from the offshore Rovuma Basin.

Meanwhile, TotalEnergies plans to restart its long-delayed $20 billion Mozambique LNG project by summer 2025, after nearly four years of suspension due to security concerns in Cabo Delgado province. The project’s revival would significantly impact regional gas supply chains and demonstrate the resilience of international investment in East African energy infrastructure.

Economic Impact and Investment Climate

The combined investment commitments represent more than $8 billion in new capital flowing into Angola’s energy sector, excluding ongoing projects and operational expenditures. This influx occurs as Angola actively courts international investment through competitive licensing rounds and fiscal incentives designed to offset the challenges of operating in mature offshore fields.

Recent exploration activities have yielded encouraging results across the country’s sedimentary basins. Nigerian multinational Oando PLC recently received operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, with estimated prospective resources of 770 to 1,100 million barrels of oil. Such discoveries validate Angola’s strategy of promoting exploration opportunities that the government hopes will represent half of the country’s future production.

Infrastructure Development and U.S. Strategic Partnerships

Angola’s energy sector development occurs alongside major infrastructure investments, including the $1.3 billion Lobito transportation corridor project supported by the United States. This initiative reflects Angola’s broader geopolitical realignment under President Lourenço, strengthening ties with Western partners while reducing historical dependence on traditional allies.

The Lobito corridor project enhances Angola’s capacity to export resources while providing critical infrastructure for regional trade, complementing the energy sector investments by improving logistics and transportation capabilities essential for sustained industrial development.

Technological Innovation and Environmental Considerations

The new investment commitments emphasize technological advancement and environmental responsibility. Azule Energy’s recent projects feature fully electrified FPSOs designed to eliminate routine flaring and minimize greenhouse gas emissions, reflecting industry-wide commitments to sustainable operations.

TotalEnergies has announced plans to close flaring at all its FPSOs in Angola, with the Dalia FPSO flare closure expected to save approximately 50,000 KT of carbon emissions per year. These initiatives align with global energy transition objectives while maintaining operational efficiency in challenging deepwater environments.

Market Outlook and Challenges

Despite significant investment commitments and regulatory improvements, Angola faces substantial challenges in reversing years of production decline. The country’s output peaked at 1.88 million barrels per day in 2008 but has experienced consistent decline since 2015, averaging negative growth of 5% year-over-year as mature fields undergo natural depletion.

The success of current investment programs depends heavily on execution capabilities, supply chain availability, and continued security in offshore operations. Rig scheduling, subsea equipment lead times, and marine services availability represent ongoing challenges for West Africa’s supply chain, potentially affecting project timelines and costs.

Local Content Development and Social Investment

The investment programs emphasize local content development and community engagement. TotalEnergies has added 77 local entities to its supplier base since 2023 and actively supports local companies in improving technical qualifications to meet international standards for competitive bidding processes.

Azule Energy continues BP’s and Eni’s established social investment commitments in Angola, focusing on education, healthcare, and skills development programs that create sustainable value for local communities while building the workforce capabilities essential for long-term sector growth.

Conclusion and Strategic Implications

The $5 billion investment commitment by Azule Energy, combined with TotalEnergies’ $3 billion Dalia Life Extension program and broader industry activities, signals a renewed phase of confidence in Angola’s energy sector. These investments validate the country’s post-OPEC strategy of regulatory modernization and production optimization, while positioning Angola as a key player in regional energy security and global supply chains.

The success of these programs will largely determine whether Angola can achieve its goal of sustained production above one million barrels per day while transitioning toward increased gas production and renewable energy integration. With international oil companies recommitting significant capital and the government implementing supportive policies, Angola appears positioned for a potential renaissance in its energy sector, marking a significant chapter in the country’s 50-year post-independence development.

The investments also reflect broader geopolitical trends in African energy development, as Western companies and governments seek to strengthen partnerships with resource-rich nations while promoting sustainable development practices and technological innovation in challenging operating environments.

The Angola Oil & Gas Conference 2025 continues in Luanda through September 4, bringing together international energy leaders, government officials, and industry stakeholders to discuss investment opportunities and strategic partnerships in one of Africa’s most significant hydrocarbon provinces.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

4th September, 2025