Can you introduce KAESO Energy Services?

When I arrived in Angola in 2008 with SLB, I noticed that the local content companies in the oil and gas sector lacked technical services; they offered only basic services like cleaning, transportation and catering.

In 2013, we launched KAESO Energy Services (KAESO). We focused on niche products that did not compete directly with major service companies like SLB, Halliburton and Baker Hughes. Our mission was to demonstrate that local companies could also provide technical services. Our first client was TotalEnergies, starting with supplying retrievable bridge plugs.

Over time, we expanded our service portfolio to include four main product lines: downhole tools, asset management, maintenance services, and consulting. In downhole tools, we offer barrier, wellbore cleaning, intervention and conveyance services. Our asset management primarily involves cargo container units, with over 1,500 units in the region (Angola and Namibia), serving major clients like Azule Energy, SLB, Halliburton, Baker Hughes and others. Maintenance services include refurbishing equipment such as drill bits (KAESO is the first and only company refurbishing drill bits in Angola), and other metal structures, which positively impact CO2 footprints. Our consultancy services focus on manpower. Since 2013, we have grown from a seven-person company to a 75-person company, successfully navigating several crises in 2015, 2018, and 2020.

Which business lines are currently driving the most growth for KAESO?

The main growth drivers are the operators and international service companies. Downhole tools are mainly for operators as they involve working directly in the wells. Asset management supports the service companies by providing logistics services, mainly for transporting equipment from onshore to offshore and back. These two areas are currently our main growth drivers.

What are the main challenges Angola’s oil and gas sector is facing and how can they be overcome?

The main challenges we face are similar to the broader issues in Angola. Angolan oil production has been declining drastically, from 1.8 million bpd in 2015 to 1.1 million bpd today, and it is still declining. We lack local operators who can manage the full cycle of a field and service companies that can provide basic services to design and build wells. We also do not have enough refineries to process our crude oil or the means to store strategic reserves, which affects the entire sector.

To reverse the decline, we need to increase production through more exploration, which requires attracting more operators, both international and local. The legal framework for exploration in Angola is not designed for medium or small local operators, making it a tough and expensive environment for them to survive. Economic instability, high inflation rates of around 25-30% and currency depreciation of up to 20% in a single month further complicate planning and operations. Stabilizing the economy and currency is crucial for the survival of local companies. We face the challenge of being paid in local currency, which loses value quickly, making it difficult to pay for equipment abroad in foreign currency.

What opportunities do you see for KAESO outside Angola, particularly in Namibia?

While there are still opportunities in Angola, Namibia presents an interesting prospect. We entered Namibia in 2022 and established an operational oilfield service workshop in Luderitz, becoming the only company with such facilities there. We invested in significant infrastructure, including one of the biggest breakout machines in Namibia, a 25,000 PSI pressure test bay, cranes and other equipment. We served major international OFS companies, who deployed their services from our base. This positions us well for future developments in Namibia, even before any commercial production.

Could you share your priorities for the coming years and your focus for KAESO?

There is a shift in the energy sector, especially in Africa, with new producers like Namibia and Senegal emerging. Our focus is on ensuring that local content benefits the people. We want to invest in infrastructure and local talent, making sure that the resources bring real benefits to the local communities. For me, there are two types of local content: extractive and inclusive. We want to be on the inclusive side, investing in infrastructure and local people, ensuring that they benefit from their own resources. This approach will guide our expansion into new countries and ventures, focusing on sustainable growth and local empowerment.