Source: APO
Algeria is stepping up efforts to attract new upstream investment as it advances fresh licensing opportunities and seeks to unlock production from both mature and frontier acreage. As the country works to strengthen its position as one of Africa’s leading hydrocarbon producers, creating a more competitive investment environment will be just as important as expanding exploration activity.
While Algeria and Angola have distinct political and institutional landscapes, both rank among Africa’s largest oil and gas producers with significant untapped potential. In Crude Oil: Power, Turnaround and Transformation in Angola (https://apo-opa.co/3SROVoS), NJ Ayuk, Executive Chairman of the African Energy Chamber, examines how Angola transformed its upstream sector through a series of regulatory reforms.
Although focused on Angola, the book offers valuable insights into how policy certainty and institutional reform can complement geological potential in attracting long-term investment.
Backed by an upstream investment pipeline expected to exceed $60 billion between 2025 and 2030, Angola has attracted major developments across oil and gas, including the Quiluma and Maboqueiro non-associated gas project, the Agogo Integrated West Hub, the Greater PAJ development, and TotalEnergies’ Kaminho project. Together, these investments demonstrate how a predictable regulatory framework can translate directly into sustained project activity.
The foundation for this growth was laid in 2019, when Angola established the National Oil, Gas & Biofuels Agency (ANPG), separating Sonangol’s commercial responsibilities from regulatory oversight. The reform streamlined licensing, strengthened transparency and enabled Sonangol to operate as a commercial company while ANPG assumed responsibility for concession management. As Algeria continues strengthening its investment framework, greater institutional clarity and a more independent licensing process could similarly enhance investor confidence an accelerate project development.
Angola also introduced a multi-year licensing strategy alongside its permanent offer regime, allowing companies to negotiate outside traditional bid rounds. The flexible approach has resulted in more than 70 blocks being awarded since 2019 while ensuring exploration opportunities remain continuously available. As Algeria seeks to unlock its vast underexplored basins, more flexible licensing mechanisms could broaden investor participation and reduce delays between licensing rounds.
Beyond licensing reform, Angola implemented targeted fiscal incentives for mature fields and dedicated legislation for non-associated natural gas, creating stronger commercial conditions for brownfield redevelopment and standalone gas projects. These measures have helped attract new investment into existing producing assets while accelerating gas commercialization. Similar policies could support Algeria’s efforts to maximize production from aging fields and unlock additional gas resources.
“Algeria already possesses the resources, expertise and strategic position to remain one of Africa’s leading energy producers. Angola’s experience shows how regulatory evolution can complement those strengths and create even greater opportunities for long-term investment,” says Ayuk.
As Algeria looks toward its next phase of upstream growth, Angola’s experience underscores how regulatory reform can complement resource wealth, helping translate exploration potential into sustained investment and long-term sector development.
Distributed by APO Group on behalf of African Energy Chamber.