Can you introduce Enagol to our audience?

Enagol, Energias de Angola Lda, is a private entity with over 15 years of operations. Our primary focus lies on Non-Destructive Testing (NDT) services, with extensive experience in the oil and gas domain. Additionally, we have previously undertaken energy projects in Angola and Mozambique, particularly in power generation. While our core remains the oil and gas sector, we are expanding into the construction industry as well, with ongoing engagements with civil construction entities. Despite initial unfamiliarity with NDT services among our construction clientele, they responded positively once they were informed about its benefits. Presently, we are active in Angola, Namibia, and Mauritius, and have minor projects in Mozambique, with Luanda serving as our base.

What is the operating environment like for Angolan indigenous companies?

Working in Angola is challenging; our oil and gas market was initially designed to facilitate foreign companies. Enagol is part of a group of indigenous oil and gas service providers that are advocating for more opportunities for local companies. While progress is being made with local content laws, many foreign operators still question the quality of local companies. Many foreign companies come with pre-existing contracts from their home countries, favoring their own nationals. The battle for local content is hard. ANPG is supporting us, but there is a long road ahead. The industry is resistant to change, but we are committed to proving our capability and hope Enagol will become a leading NDT service provider.

What steps do you believe the government and regulators can take to assist indigenous companies?

The regulators are reviewing contracts, ensuring public tenders include local participation. However, some bids are restricted to certain supplier lists. ANPG has categorized services, but we advocate for more inclusivity. Transparent databases could aid operators in selecting local firms. While ANPG handles larger bids, smaller projects also need scrutiny, especially in fabrication. Operators often prioritize cost over quality, but as the saying goes, ‘buying cheap can be expensive’.

Which African countries do you think are good for expanding outside of Angola?

As an Angolan, I am very patriotic and wish for all projects and revenue to stay within Angola. However, we are facing tough times due to exchange rate fluctuations and inflation. This makes it challenging to pay suppliers abroad. The Angolan oil and gas industry relies on suppliers from countries like Germany and the USA. However, we must pay for goods in foreign currency, and our banks face difficulties sending money abroad. When the National Bank of Angola conducts bids for US dollars, banks often do not have enough currency to meet demand, causing a shortage. Consequently, we sometimes wait up to three months to pay our suppliers, impacting our operations. Clients want quick results, but delays in payment and bureaucracy slow us down. We have had to take on debt to cover costs while waiting for payments, and the process of invoicing and receiving payments can take up to 120 days. 

To mitigate these challenges, we have started exploring other markets. Namibia and Mozambique are particularly promising due to recent discoveries. While these markets are relatively new and undeveloped compared to Angola and Nigeria, we see this as an opportunity to enter early and establish ourselves before the market becomes saturated. Currently, we are active in Namibia providing inspection services for fabrication. Namibia will be the next ‘El Dorado’ of Africa.

What are Enagol’s plans for the coming years?

We have actively participated in bids for onshore exploration blocks, securing shares in four blocks, two of them still without an operator. Additionally, we have partnered with Acrep in KON-19 and Etu Energias in CON-8, where they act as operators, and we are part of the shareholder group. Our approach aligns with the Angolan Ministry’s focus on prioritizing local involvement in onshore projects. Looking ahead, we are also considering offshore opportunities. While large IOCs dominate offshore operations in Angola, we are encouraged by our involvement in the industry with other Angolan companies like Etu Energias. We believe this strategy mirrors the successful approach seen in Nigeria, where local companies are taking charge of onshore operations. Offshore will be the next frontier.