‘New lessons from Angolan energy industry good insights for Nigeria’
In recent times, there’s so much excitement about where Angola’s energy sector is headed. Sergio Pugliese, a successful entrepreneur and oil executive, is really hyped and enthused about recent developments and future direction of his country’s energy sector.
Slightly after Nigeria, Angola is ranked second largest oil producing country in Sub-Saharan Africa and an OPEC member with an output of approximately 1.55 million barrels of oil per day and an estimated 17,904.5 million cubic feet of natural gas production.
Production levels in Angola are expected to soar by 2020 following the country’s restructuring, including the reorganization of the state oil company Sonangol. In addition to a drastic revision of Angola’s legislation related to oil and gas, the government’s intent is to spur growth in the sector, encouraging exploration in development areas, improving operation efficiencies, reducing taxes, empowering the private sector, and attracting investors. Since the 2017 elections, Angola’s oil and gas sector has been featured in numerous conferences aimed at linking top government officials with the global energy industry.
The African Energy Chamber (AEC), the continent’s voice for the ongoing change and progression in the African energy industry recently named Sergio Pugliese as the AEC’s President for Angola.
The appointment will be the first of many to follow across the continent as the AEC guides local content development that will enable African companies to grow and take the lead in the development of their continent.
In his preliminary statement, Pugliese averred that “It is with great sense of responsibility towards Angola and the African Energy Chamber that I am assuming this new function. Angola is reforming is very fast and the need to provide accurate information and guidance for investors doing business in Angola is growing”. Prior to being named the AEC’s President for Angola, Sergio Pugliese most recently worked with BP and Statoil as top executive before founding Angola-focused oil and gas services companies Motiva LDA and Amipha LDA.
According to him, “The rapid change and reform in Angola’s oil sector since the 2017 election has caught the attention of many.
On whether the new narrative will enhance Angola’s work towards attracting more investment into local content development, Pugliese noted that “Investment into local content development needs to be channelled and supported by strong regulations. As more foreign investors get into the market, the country is currently working on a new regulatory framework to promote the development of the Angolan content and build domestic capacities.
“At the moment, several pieces of legislation touch on local content and there is a definitive need to make our local content framework more efficient and competitive. A draft presidential decree on local content has been in the works this year and is expected for release and public consultation this month.
He added further that the oil Industry is looking forward to the Angola Oil and Gas conference organised by Africa Oil and Power in Luanda from June 2nd to 4th, stressing that “The President is going to unveil the government’s oil and gas agenda. As the largest oil lobby in Africa, we will be working closely with the government and the oil industry on this. The Oil industry and Angola needs a champion and we will be that champion”.