Luanda, Oct. 2, 2024 (Lusa) — Angola's president on Wednesday recognised the "seriousness" of the climate crisis but stressed that oil-producing countries "have the right" to develop this resource for the benefit of their people.
João Lourenço, who was speaking in Luanda at the opening of the 5th edition of the Angola Oil&Gas conference, acknowledged the "increasingly harmful" effects of the global climate crisis but highlighted the rights of hydrocarbon producers to "develop their resources for the good of their peoples and nations," as long as they take measures to minimise the effects on the environment.
In this context, he emphasised that the oil sector should promote the sustainable exploitation of fossil fuels and adopt measures to mitigate and offset greenhouse gas emissions. He pointed to actions taken by Angolan state oil company Sonangol, such as the construction of photovoltaic plants and the development of a green hydrogen production project in partnership with German companies.
Joao Lourenço also noted that the conference was taking place at a time when the international geopolitical and macroeconomic situation has created "countless distortions in the international markets" and constraints on the financing of projects in the extractive sector compared to investments in renewable energies.
However, he reiterated that "Angola continues with its aspiration to be a competitive producer of hydrocarbons," listing measures adopted to realise these goals and establish an "attractive and globally competitive regulatory environment, with market-oriented policies and tax regimes," allowing national oil production to remain above 1.1 million barrels of oil per day.
Among the fiscal, contractual and operational measures, the head of Angola's government pointed to the bidding process for new oil concessions for the 2019-2025 period, which aims to award 50 new blocks and assess the oil potential of Angola's inland basins, such as Kassanje and Etosha-Okavango, to boost and intensify the replenishment of reserves.
Another focus of João Lourenço's speech was opening the country to national and foreign private investment with "fair contractual and fiscal terms and conditions with advantages for all" who intend to invest in it.
Angola Oil & Gas (AOG) 2024, with the theme "Boosting Exploration and Development for Increased Production in Angola", brings together more than 2,500 delegates, representing more than 40 countries, with the participation of more than 500 organisations and more than a hundred speakers, presenting itself as "an important meeting point to promote the energy transition, the modernisation of oil and gas infrastructure and new investment opportunities".
According to the organisation, the prospects for investment in Angola over the next five years are ambitious. The estimated value is $60 billion (around €54.2 billion), and the next licensing round for oil blocks is scheduled for 2025.
This round is part of a six-year programme that began in 2019, and 26 blocks have been awarded under this initiative.
RCR/ADB // ADB.
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