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Angola is moving to curb greenhouse gas emissions from its oil and gas industry, under a new cooperation agreement between its state-owned oil company and a French multinational energy firm.
The deal allows Sonangol to use Paris-based TotalEnergies’ sensor technology to monitor the methane and carbon dioxide output from its operations, both inland and offshore. The technology, known as Airborne Ultralight Spectrometer for Environmental Applications, is a drone-based system that monitors emissions in locations that are otherwise nearly impossible to reach.
The companies signed the deal during the U.N. climate conference in Dubai, where global industry leaders more broadly agreed to pour more money into pledges to slash methane pollution. The gas is more potent than carbon dioxide and one of the major contributors to global warming.
TotalEnergies has similar deals in place with national oil and gas firms in Azerbaijan and Brazil. In a press release, the French multinational said its AUSEA system is “currently one of the most accurate technologies in the world to detect and measure methane emissions.”
For Sonangol, the agreement is part of an effort to prioritize environmental reforms and meet the growing demand for more sustainable energy, as the company looks to attract private capital including from climate-focused investors in the West.
Sonangol already has a joint venture with German engineering firms to build a state-of-the-art facility to produce nearly 300,000 tons of green hydrogen per year for export to Europe, expanding the continent’s access to clean energy. The facility is expected to open in 2024, which would make Sonangol the first company in sub-Saharan Africa to supply green hydrogen to European markets.
The newly signed methane reduction deal represents another step forward in Sonangol’s environmental efforts and, potentially, an inflection point for Angola itself.
Angola is the largest oil producer in sub-Saharan Africa and a member of the Organization of Petroleum Exporting Countries. Petroleum has long been the engine of Angola’s economy, and state-owned Sonangol remains the primary purveyor of the nation’s oil wealth. It leads the exploration of Angola’s liquid and gaseous hydrocarbons and manufactures, markets and exports petroleum to global markets, including through its U.S. subsidiary in Houston — a critical link to American oil companies and other business partners.
Sonangol’s environmental initiatives coincide with Angola’s broader movement toward economic reform, as the government in Luanda increasingly seeks private investment to modernize and streamline its prized industries, from energy to diamond production. That includes a plan to privatize up to 30 per cent of Sonangol’s equity.
Similarly, under President João Lourenço “Propriv” program, private investors will be invited to buy shares in Endiama, the state-owned diamond concessionaire.
There are early indications that Angola’s modernization program is bearing fruit. The nation’s gross domestic product grew by three per cent in 2022, ending nearly a decade of decline, according to the International Monetary Fund.
