Angola’s First Major Gas Discovery Could Anchor Its $150 Billion Strategy

Angola has made a significant breakthrough in its fossil fuel diversification efforts with the discovery of a major natural gas reserve. Azule Energy—a joint venture involving BP, Eni, and a consortium of Angolan companies—drilled the country’s first dedicated gas exploration well in the Lower Congo Basin. Early estimates suggest the field holds more than one trillion cubic feet of natural gas and around 100 million barrels of condensates.

This marks a historic milestone for Angola, which exited OPEC in 2023 and has since sought to reduce its dependence on crude oil by tapping into its natural gas potential. Adriano Mongini, CEO of Azule Energy, described the discovery as a “historic moment” and expressed confidence in the untapped promise of the Lower Congo Basin.

The find aligns with Angola’s recently unveiled National Gas Master Plan, a 30-year strategy designed to maximize gas resources, attract over $30 billion in investment, and generate up to $150 billion in economic returns. The plan also reflects the implementation of Law 10/14, which bans gas flaring across all hydrocarbon operations. Backed by over $60 billion in financial commitments already secured from international partners, the strategy aims to position Angola as a regional gas hub supplying Asian and European LNG markets.

By the late 2030s, Angola could be earning between $2 to $3 billion annually from LNG exports. The creation of the New Gas Consortium—the country’s first non-associated gas project—is set to enhance domestic energy security and export capacity alike.

Despite this progress, Angola’s crude oil revenue fell to $6.4 billion in the first quarter of 2025, an 18 percent year-on-year drop, driven by lower oil prices and a nearly 10 percent decline in export volume. China remained Angola’s top crude export destination, followed by India, Indonesia, Spain, and Malaysia. Alongside Nigeria, Angola remains one of Africa’s largest oil producers.

Beyond oil and gas, Angola has ambitions to become a key producer of critical minerals. It aims to ramp up diamond production to 17.5 million carats annually by 2027. The government is also pursuing cross-sectoral synergies, especially between hydrocarbons, mining, and agriculture, to boost fertilizer production and broader industrial development.

In recognition of these efforts, the Africa Finance Corporation recently spotlighted Angola and Nigeria as the front-runners in Africa’s energy transition. According to the AFC, Africa could meet up to 90 percent of its fuel demand if its current and upcoming refineries operate at full capacity—nearly double the coverage from the year before.

In Nigeria, the energy sector saw a transformative leap last year when the Dangote Oil Refinery began producing and selling gasoline locally. Though launched in January 2024, it only started gasoline production in September. The $20.5 billion facility has the capacity to process 650,000 barrels of crude oil daily, more than enough to meet Nigeria’s domestic fuel needs.

Significantly, the refinery has been transacting in local currency—buying crude and selling refined fuel within Nigeria. This shift is helping the country conserve foreign exchange reserves and reduce its reliance on oil-for-fuel swap deals, a system long plagued by a lack of transparency and accountability. The Nigerian National Petroleum Company only began publishing its accounts in 2019, despite controlling nearly 90 percent of the nation’s export revenue. The hope now is that the Dangote refinery marks a new era of transparency, efficiency, and self-reliance in Nigeria’s downstream oil sector.