Petronas in Angola: Kaminho Partnership and Deepwater Ambitions

Petronas: Malaysia’s National Oil Company in Angola’s Deepwater

Petroliam Nasional Berhad (Petronas), Malaysia’s state-owned oil and gas company, has established a significant presence in Angola through its partnership with TotalEnergies in the deepwater Kwanza Basin. Petronas’ participation in the transformational Kaminho development—which received final investment decision (FID) in May 2024 at approximately USD 6 billion—represents one of the most substantial investments by an Asian national oil company in sub-Saharan African upstream petroleum.

Petronas brings to Angola decades of deepwater operating experience from Malaysia’s offshore basins, global LNG expertise (Petronas is the world’s third-largest LNG exporter), and the financial strength of a state-owned company managing Malaysia’s petroleum wealth. The company’s Angolan strategy is part of a broader international expansion that includes significant positions in Suriname, Brazil, Mexico, Iraq, and Mauritania-Senegal.

Angola Portfolio

Block 20/21 — Kaminho Development Partnership

Petronas holds a participating interest in Block 20/21 in the deepwater Kwanza Basin, partnering with TotalEnergies (operator, 40 percent), Sonangol, and other consortium members. Block 20/21 is home to the Kaminho discovery, which proved the Kwanza Basin’s petroleum system and led to the FID in May 2024 for a FPSO development targeting approximately 70,000 bpd of crude oil production.

Petronas’ participation in Block 20/21 was secured through the ANPG licensing programme, which offered deepwater Kwanza Basin blocks during the 2021 round. The company’s technical capabilities in deepwater development and its financial capacity to fund multi-billion-dollar projects made it an attractive partner for TotalEnergies.

Kaminho development key parameters:

• First oil target: 2028-2029
• Production capacity: Approximately 70,000 bpd
• Total investment: Approximately USD 6 billion
• Development concept: New-build FPSO with subsea wells
• Petronas’ share of capital expenditure: Proportional to its equity interest, estimated at USD 500 million to USD 1.5 billion depending on its exact percentage

Additional Kwanza Basin Exploration

Petronas may hold interests in additional exploration blocks in the Kwanza Basin, secured through the same licensing round that provided entry to Block 20/21. The Kwanza Basin, de-risked by the Kaminho discovery, offers significant remaining exploration potential in adjacent structural and stratigraphic traps.

Strategic Rationale

Africa Portfolio Expansion

Petronas has been expanding its African portfolio since the 2010s, with interests in:

• Suriname/Guyana Basin: Interests in offshore blocks adjacent to the prolific Stabroek Block
• Mozambique: Potential interest in LNG-related gas developments
• Angola: Kwanza Basin deepwater partnership

Angola offers Petronas exposure to a proven petroleum province with existing export infrastructure, reducing the time-to-revenue risk compared to frontier basins.

Deepwater Expertise Transfer

Petronas is a highly capable deepwater operator, having developed Malaysia’s Kebabangan, Rotan, and other deepwater fields in water depths exceeding 1,000 metres. The company’s experience in FPSO-based deepwater developments—Malaysia has more FPSOs than any country except Brazil—is directly relevant to the Kaminho development in Angola.

LNG Market Positioning

Petronas’ position as a major LNG producer and trader (Malaysia is the world’s third-largest LNG exporter) creates potential synergies with Angola’s gas sector. If the Kwanza Basin yields significant gas resources alongside oil, Petronas’ LNG expertise could be leveraged for gas commercialisation through the Angola LNG plant at Soyo or through dedicated gas export facilities.

The New Gas Consortium led by Azule Energy and the broader gas commercialisation strategy could benefit from Petronas’ LNG marketing and trading capabilities.

ESG and Sustainability

Petronas has set a net-zero carbon emissions target for 2050 and has committed to reducing Scope 1 and Scope 2 emissions from its operations. In Angola, these commitments translate to:

• Support for the Kaminho FPSO’s low-carbon design features, including zero routine flaring and high-efficiency power generation
• Methane emissions management in accordance with Petronas’ global standards
• ESG compliance aligned with Malaysian Securities Commission sustainability disclosure requirements and ISSB standards
• Local content commitments as part of the Block 20/21 PSA obligations

Workforce and Local Content

Petronas’ Angola operations are managed through a Luanda-based country office, staffed by a combination of Malaysian expatriates and Angolan nationals. The company’s local content plan for Block 20/21 includes commitments to Angolan workforce development, procurement from Angolan suppliers, and technology transfer in deepwater engineering and project management.

As a non-operator in Block 20/21, Petronas’ direct workforce in Angola is relatively small (estimated at 50 to 150 staff), with the larger workforce managed by TotalEnergies as operator. Our deepwater field development pipeline article covers the Kaminho project timeline in detail.

Financial Capacity

Petronas is one of the most financially robust national oil companies globally, with annual revenues exceeding USD 60 billion and a strong balance sheet supported by Malaysia’s petroleum reserves. This financial capacity ensures that Petronas can meet its capital commitments for the Kaminho development and any future exploration programmes in Angola without difficulty.

The company’s investment-grade credit rating and access to international capital markets also means that project financing or co-financing structures could be deployed to optimise capital efficiency for Angolan investments.

Strategic Outlook

Petronas’ Angola strategy is focused on:

1. Kaminho development execution: Contributing to the successful delivery of the Kaminho FPSO, targeting first oil in 2028-2029.
2. Kwanza Basin exploration: Participating in additional exploration in the Kwanza Basin to identify follow-on development opportunities.
3. Gas commercialisation: Leveraging LNG expertise to support gas development if significant gas resources are discovered in the Kwanza Basin.
4. Portfolio growth: Evaluating additional opportunities through future ANPG licensing rounds or secondary market acquisitions.

Conclusion

Petronas’ entry into Angola through the Kwanza Basin partnership with TotalEnergies represents a strategically significant commitment by one of Asia’s most capable national oil companies. The Kaminho development provides a multi-decade production asset in a de-risked deepwater basin, while the remaining exploration potential in the Kwanza Basin offers meaningful upside. For Angola, Petronas’ participation brings financial strength, deepwater technical expertise, and LNG market knowledge that complement the existing capabilities of the international operator community. The partnership exemplifies the diversification of Angola’s investor base beyond traditional European and American majors, reinforcing the country’s position as a globally competitive upstream investment destination.