Indonesia is actively seeking new crude oil suppliers to diversify its imports, with the Ministry of Energy and Mineral Resources targeting Africa as a key region. The move presents a major opportunity for major producers like Angola to tap into Indonesia’s huge market as Indonesia seeks to reduce its reliance on traditional suppliers and strengthen its energy security.
Indonesia’s oil production is steadily declining from 996,000 barrels per day in 2006 to 605,000 barrels per day in 2023 due to natural decline from mature oil fields. At the same time, fuel consumption is increasing due to population growth and economic activity, leading to a growing reliance on imported fuel. The share of crude oil imports is expected to increase from 41% to 82% by 2030, while the share of imported fuel is expected to increase from 24% to 43%. Currently, Indonesia imports most of its crude oil from Nigeria ($3.66 billion), Saudi Arabia ($2.7 billion), and Angola ($800 million). As demand increases, Angola, which is focused on expanding production and exports, has emerged as a strategic trading partner for Indonesia.
Upcoming projects support export growth
Angola is well positioned to increase crude oil exports, given the country’s commitment to maintain production at 1.1 million bpd until 2027. A strong pipeline of offshore projects is set to come online in the coming years to support increased production and export capacity. These include the Camiño deepwater project in Block 20/11, which achieved FID in May 2024. Developed by energy major Total Energies, the project consists of the Cameia and Golfinho fields and is the first large-scale deepwater development in the Kwanza Basin. The project will consist of an FPSO with a production capacity of 70,000 bpd and will begin production by 2028. Total Energies is also advancing the Begonia conventional field development in Block 17/06 and the expansion of the CLOV Phase 2 project in Block 17.
Additionally, international energy company Azur Energy expects production to commence at its Agogo Integrated West Hub development in Block 15/06 in 2026. The project will produce hydrocarbons from the existing Agogo field and the newly developed Ndungu field. The addition of the Agogo FPSO, currently under construction, will add 120,000 bpd to the development and create a new producing hub in the block.
Exploration investment to increase crude oil production
The focus on attracting exploration investments has resulted in a steady stream of new players entering Angola’s upstream market, and new field developments and ramp-up efforts are expected to further boost crude oil production. To support regular investment in exploration, the country launched a six-year licensing round in 2019, with the latest tender offering 12 blocks in the Lower Congo and Kwanza basins and receiving 53 bids. The country’s concessionaire, the National Agency for Oil, Gas and Biofuels (ANPG), is currently negotiating the terms of this round and is preparing to launch the next tender offering 10 blocks in the Kwanza and Benguela basins in the first quarter of 2025. In parallel with incremental drilling of existing fields aimed at maximizing reserves in mature assets, Angola is on track to increase domestic crude oil production.
Angola’s flagship industry event, Angola Oil and Gas (AOG), will be held in Luanda on 2-3 October and will provide a deep dive into expanding trade opportunities between the country and its Asian counterparts. In line with the country’s production targets, the event will connect investors with opportunities in the Angolan bloc as well as provide a platform to enhance cooperation between Angola and global crude oil importers. For Indonesia, AOG 2024 is a strategic opportunity to establish long-term trade relations with one of Africa’s largest producers.
AOG is Angola’s largest oil and gas event. Organized 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 Association, the event is a platform to seal deals and develop the Angola oil and gas industry. To participate as a sponsor or delegate, inquiry.
