The recent production sharing contract between Oando Plc and Angola’s National Oil, Gas and Biofuels Agency (ANPG) for the KON-13 block in the Kwanza Basin marks a significant turning point in Africa’s energy landscape. For the first time, an indigenous Nigerian firm is taking an operational lead in Angola’s upstream sector—signalling a broader shift toward African-led capital, expertise, and ambition in shaping the continent’s oil economy.
The KON-13 agreement grants Oando a 45% operated stake in an onshore block with estimated resources ranging between 770 million and 1.1 billion barrels. The deal comes at a pivotal moment for Angola’s oil sector, with production projected to rise to approximately 1.14 million barrels per day in 2026, reversing years of decline. Additionally, over $66 billion in new investments is expected by 2030.
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As Angola reopens its onshore basins—after decades of offshore dominance—the entry of an indigenous operator highlights a structural shift. African firms are increasingly assuming roles once dominated by international oil companies (IOCs), bringing not only technical expertise but also a stronger focus on regional value creation.
The KON-13 project also reshapes Angola’s investment landscape. It diversifies capital sources beyond traditional Western and Asian partners, strengthens regional participation, and increases risk appetite for onshore assets. This is particularly significant as global oil majors increasingly pivot toward low-carbon investments, reducing their exposure to new upstream ventures.
Furthermore, indigenous operators such as Oando play a critical role in strengthening local content and regional integration. By utilising local supply chains, fostering skills development, and retaining more economic value within the continent, they align closely with Angola’s broader objective of deepening domestic participation and reducing capital outflows.
In 2025, Angola’s GDP reached approximately 34.73 trillion kwanzas (€32.3 billion), with economic growth of 3.1%. The oil sector contributed 19.09% of GDP, despite contracting by 1.21%, while the non-oil sector—now accounting for 80.91% of GDP—grew by 7.34%. Despite this progress in diversification, oil remains central to the economy, accounting for approximately 95% of exports and serving as a key source of fiscal revenue and foreign exchange stability.
Angola’s oil journey has evolved significantly over the decades. From early onshore discoveries in the 1950s, through a civil war sustained by offshore production, to a post-2002 boom that peaked at nearly 2 million barrels per day, the sector has undergone multiple phases. More recently, production has declined due to ageing fields and underinvestment.
In response, the government has implemented reforms, including the establishment of ANPG to separate regulatory and operational roles and restore investor confidence. Angola’s current strategy is built on three pillars: stabilising production through new projects, expanding gas monetisation, and reducing reliance on imported refined products through refinery developments in Cabinda, Soyo, and Lobito. The entry of Oando aligns closely with these priorities, particularly in revitalising onshore basins.
Historically, Angola has played a stabilising role in African energy markets, maintaining consistent output during global supply disruptions and attracting substantial foreign investment. Today, however, its role is evolving. The country is positioning itself not just as a producer, but as a catalyst for regional energy integration.
Compared to Nigeria—where oil production is challenged by theft and underinvestment but supported by refining expansion—and Namibia, which is emerging as a frontier exploration hub, Angola occupies a mature production position. Its strategic focus on onshore revitalisation, gas development, and regulatory reform, particularly following its 2023 exit from OPEC, reflects a deliberate effort to regain production flexibility and investment competitiveness.
Despite ongoing challenges—including ageing deepwater assets, oil price volatility, high capital requirements, and execution risks in onshore development—the outlook remains promising. The rise of African independent operators, renewed interest in onshore exploration, and the growing importance of gas as a transition fuel all point to new opportunities.
The KON-13 agreement ultimately represents more than a single transaction. It signals a broader transformation in Africa’s oil industry—one in which indigenous companies are increasingly taking ownership of the continent’s energy future. As Angola evolves from a production hub into a more diversified investment platform, it is becoming clear that the next phase of African oil development will be defined not just by resources, but by who controls, finances, and operates them.
