Angola set to attract Billions of dollars in Foreign Direct Investment

Sierra Leone Telegraph: 4 February 2020:

Angolan government reforms in the country’s oil sector, including at national oil company SONANGOL are already yielding positive results, with 30 percent of the company set to be privatized by 2022.

Angola’s sector reforms are to be backed up by an investment campaign drive by Africa Oil & Power,  including the Angola Oil & Gas Conference & Exhibition on June 16-17, 2020, at the Talatona Convention Center in Luanda.

Angola’s Minister of Mineral Resources and Petroleum H.E. Diamantino Pedro Azevedo said in London on 21 January that the government had made significant progress in its efforts to restructure the oil and gas sector.

Initial successes include significant cost reductions at the national oil company (NOC) Sonangol that have led to the government deciding to list up to 30 percent of the company. The government believes that this will enable the company to not only to raise money for investment, but will also increase its competitive edge.

Further reforms include the privatization of Sonangol subsidiaries that do not belong to the NOC’s core business of exploration and production. This privatization process offers significant opportunities for new entrants into Angola’s oil and gas sector.
Initial projections point to foreign direct investment flows of up to $10 billion in the next 3 years, as external players move in to take over from Sonangol in key support service roles previously fulfilled by the NOC.

In an effort to continue promoting the ongoing reforms in the sector, the Ministry of Mineral Resources and Petroleum has partnered with Africa Oil & Power, the continent’s premier platform for energy investment and policy, to promote and attract foreign direct investment in what is one of Africa’s biggest economies.

As part of this, the Angola Oil & Gas (AOG) Conference & Exhibition will return for a second year as the highlight of an international investment drive aimed at bringing new deals to the table and signing up new entrants to Angola’s oil and gas sector. The next edition will be held June 16-17, 2020, in Talatona. Surrounding the conference will be a global drive to present opportunities to a targeted audience of relevant investors.

“Thanks to the President’s sweeping reforms, Angola has embarked on an ambitious drive to attract foreign direct investment,” said James Chester, Acting CEO of Africa Oil & Power.

“Africa Oil & Power is proud to support those ongoing efforts with a global promotional campaign. The AOG Conference & Exhibition, which has become an unmissable, unrivalled investment event, will provide a strong anchor point for the 2020 initiative.”

Capital inflows into bankable projects will be a primary objective of the 2020 effort. Ongoing initiatives being promoted include the 2020 oil and gas licensing round, marginal field development, gas monetization, and attractive projects across the value chain, including the international tender for the Soyo refinery and the ramp-up of the Cabinda and Lobito refineries.

AOG 2020 is the second edition of the Angola Oil & Gas event, following a highly successful inaugural event in June 2019 that gathered more than 1,700 delegates, 67 speakers and nearly 50 exhibitors.

Officially endorsed by the Ministry of Mineral Resources and Petroleum, AOG 2019 gathered key government officials and C-suite executives from across the energy value chain for 3 days of keynote presentations, moderated panel discussions, exhibitions, networking gatherings and investment facilitation.

With two days of conference and exhibition, and one day of workshops led by Microsoft, PwC, Centro de Apoio Empresarial, Friburge and Administração Geral Tributária, AOG 2019 was one of the most highly attended events in Angola’s oil and gas history. H.E. President João Manuel Gonçalves Lourenço and H.E. Diamantino Pedro Azevedo, Minister of Mineral Resources and Petroleum, opened the conference, with speeches delivered by Governor of the National Bank of Angola H.E. José de Lima Massano, Sonangol Chairman Eng. Sebastião Pai Querido Gaspar Martins and CEO of ANPG Eng. Paulino Jerónimo.
Private sector keynotes and appearances were given by Total CEO Patrick Pouyanné and Eni’s Executive VP for Sub-Saharan Africa Guido Brusco, who presented Eni’s multibillion-dollar investment program for Angola that includes investments into solar energy.

The event received strong support from the Angolan oil and gas industry, with major players including Sonangol, Total, ExxonMobil, Chevron, Eni, Equinor, BP, Schlumberger, Baker Hughes, Halliburton and other international companies participating as sponsors, exhibitors, speakers and delegates.

The 2020 event aims to expand in size, scale and prestige. Anchored by a VIP program of senior government officials and global CEOs, AOG 2020 will be the premier gathering place for deal making and networking. Discussion points will include offshore oil and gas exploration and licensing, gas monetization, market entry, the ease of doing business in Angola, digitalization and oilfield technologies.

Opportunities emanating from the recently approved $2 billion LNG project that includes a consortium of five oil firms led by Eni will also be on display. New to the conference will be a Digitalization and Technology Forum, which will showcase advanced technologies pioneered in Angola on the exhibition floor.

10 Comments

  1. Mr. Kamara, yes, I seriously meant “many Sierra Leoneans do not even know how to read and/or write, so how could they possibly be in the position to know what economic derivative is good or not good for them?” That was, and still my question to you Mr. Kamara.

    Mr. Kamara, what does a voter’s turnout – where the people voted for one party, at the expense of the other party has to do with the people knowing the intricacies behind the free and private enterprise system, and whether one out of the two economic options is better suited for their welfare?

    Mr. Kamara, that notion is analogous to saying a car license seeker automatically knows the intricacy behind the software that is going to be used to printout his needed license, and whether there is a better software option that he prefer his license to be printed from. That argument simply doesn’t follow, Mr. Kamara. I say this because, normally license seekers do not care much about how or what goes on behind the printing of their license. They simple want a license. They simply want a license to have access to the roads they will be driving their cars on. The same goes for the people of Sierra Leone. The vast majority of Sierra Leoneans do not know whether a free or a private enterprise is good for them, nor do they care which system is used to improve their lives, so long as it does.

    “You don’t need to be able to read or write in English to understand that State enterprises are nothing but self-serving gravy trains that enrich politicians and their cronies.” That is an opinion – your opinion, Mr. Kamara. Also, you opined that a state enterprise system is a self-serving system, but privatization, which is the base economic system that we’re in – capitalism – and have been in for quite some time now is not? Is that the science to your apparatus, Mr. Kamara lol?

  2. Mr. John Kamara, this is a wide field and not so easy to answwer on this forum-page. The poverty and the high rate of unemployment is the biggest problem. I have nothing against private enterprises, but these private investors must fulfil socio-democratic standards in relation to their employees (including health insurance, pension). And this is the matter for your government in connection with your small trade unions.

    One other aspect, you have a small but rich social upper class. Do they pay enough tax? Do they keep and invest their money in Sierra Leone in useful projects like agricultural development? Or send their money out of the country, and spend on private luxury? These are only few aspects.

  3. John Kamara says “But many Sierra Leoneans like me like it because private investment is the only way to create wealth in Sierra Leone, not nationalization.” But Mr. Kamara, “many Sierra Leoneans” do not even know how to read and/’or write, so how could they possibly be in the position to know what economic derivative is good or not good for them? If you don’t mind I would like for you to expound on that idea Mr. Kamara.

    Also, I would like to know what is your personal take on the idea that privatization is better than Nationalization for our beloved country. As in, how were you able to come to that conclusion. Furthermore, is your idea of gaining wealth merely based on monetary gains?

    • Mahmoud, I find it very difficult to answer your questions simply because the premise upon which they are based is heavily flawed. For you to question the fact that many poeople in Sierra Leone including successive governments prefer private enterprise / private ownership and investments as the basis for welath creation in society is beyind me.

      Mahmoud did you seriously mean to say this: “many Sierra Leoneans do not even know how to read and/or write, so how could they possibly be in the position to know what economic derivative is good or not good for them?”

      While most Sierra Leoneans cannot read or write, yet majority of them turned out to vote in 2018 and were sensible enough to reject the APC government’s bid to stay in office for another term, after ten years of economic failure. Can you therefore say that the majority of Sierra Leoneans dont understand fundamental economics of whats good for society? You dont need to be able to read or write in English to understand that State enterprises are nothing but self-serving gravy trains that enrich politicians and their cronies. So please get your reasoning right.

  4. Mr. John Kamara,
    Yes, I also criticize the politic of the german government. Maybe you noticethat worldwide the global finance capital including this big oil companies dominating our world and governments with their neoliberal ideology, are responsible for a lot of wars, climate change and our thinking is influenced by the main stream media. And look around, not only in Africa are the rich becoming richer; the poverty in Germany is also growing.

    • So what is your suggestion Reinhard for addressing the massive unemployment problem and eradicating poverty in Sierra Leone, if not through private enterprise and investments?

  5. Why this article? Privatization of the economy by the rich (may be like isabel dos santos) should be the solution for Sierra Leone?

    • “Why this article?”, you ask? Dont you like it? But many Sierra Leoneans like me like it because private investment is the only way to create wealth in Sierra Leone, not nationalisation. Will you advice your German government to nationalise your industries? Am sure you will not; so why are you asking “why this article?” Please explain. Thank you.

  6. What an exempler for African countries to learn how to attract foreign investments. This goes to show that African leaders like the Sierra Leonean president, do not have to spend hundreds of thousands of dollars on overseas travel a year in search of investors. Organise top class sectoral conferences and exhibitions in your own country. This can bring you quick successes. Learn from Angola, and be proud of what you have as a nation.

    Invite the investors to come and see your potential. This also means that by getting hundreds of business executuves to come and stay in your beautiful resorts, will help boost and promote tourism. Because when they return home, they never forget your country and it goes to the top of their list of holiday resorts to visit in future.

    I hope the president will read and learn from this. In fact it should be read by other African leaders too. Good luck.

    • Couldn’t agree with you more sir. Our president is wasting too much resources going on wild goose chase. I might be mistaken, but I have never seen any president of a country engaging in such fruitless and wasteful spending spree in the guise of seeking investors. Likely you rightly pointed Mr. Thomas, why not invite potential investors into your country or send a team of your foreign ministry to showcase our potentials?

      Why does president Bio has to be in every event or gathering? Does this means that there are no qualified or capable individuals within the administration to perform the duties of a sales job? It’s really bemusing for this president to have plundered millions of dollars traveling every corner of the globe, with not much to show in return.

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