Angola to Launch Oil Licensing Round in Late 2025, Aiming for Stable Production Above 1 Million Barrels a Day.

Angola plans to launch a new oil licensing round in late 2025 as part of efforts to maintain production levels above 1 million barrels per day. This auction marks the final stage of a multi-year plan to stabilize oil production in the country.

Angola is set to launch its final oil licensing round by the end of 2025, aiming to maintain production levels above 1 million barrels per day. This move is part of a multiyear strategy initiated in 2019 to stabilize oil production in the country [1].

The licensing round, scheduled for the fourth quarter, will be the culmination of efforts to attract investment and boost production. The country's Mineral Resources, Petroleum and Gas Minister, Diamantino Azevedo, stated that the goal is to achieve one million barrels per day in the next year. The licensing round will target new deposits to offset the decline in production from mature wells [1].

Angola's recent decline in oil production, falling below 1 million barrels per day in July, has prompted the government to take measures to attract investment. Shell Plc's return to Angola after a 20-year absence signals growing confidence in the country's oil sector. Shell, Chevron, and Sonangol signed agreements for Block 33 in the Congo Basin, reflecting the success of reforms aimed at attracting international investment [2].

The government has also announced plans to launch a bidding round for five additional oil blocks before the end of the year, adding to the efforts to stabilize production. These blocks are part of an initial set of 10, with the remaining five already awarded through direct negotiations with undisclosed companies [2].

Additionally, Angola is constructing the long-awaited Cabinda oil refinery, set to begin fuel production before the end of 2025. The 30,000-barrel-per-day facility is expected to reduce dependence on expensive fuel imports and phase out subsidies that have previously sparked violent protests [2].

Despite these efforts, Angola faces mounting debt risks as oil revenue drops and external borrowing costs increase. The International Monetary Fund (IMF) warned that the country's fiscal position has deteriorated, with its budget shortfall forecast to almost triple to 2.8% of gross domestic product this year [3]. The IMF emphasized the need for rationalizing spending, limiting borrowing, and accelerating public financial management reforms to prevent arrears and strengthen transparency.

The IMF's assessment is that Angola's economy is expected to expand 2.1% this year, down from a forecast of 2.4% in May, due to external headwinds. Growth is expected to stabilize around 3% over the medium term, supported by diversification and structural reforms [3].

References:
[1] https://www.bloomberg.com/news/articles/2025-09-07/angola-plans-to-open-next-oil-licensing-round-by-fourth-quarter
[2] https://africa.businessinsider.com/local/markets/shell-returns-to-angola-amid-new-oil-block-bidding-to-boost-production/q9rpn84
[3] https://www.bloomberg.com/news/articles/2025-09-06/imf-warns-angola-faces-rising-debt-risks-as-oil-income-declines