- Angola’s oilfield services market is becoming more complex, with simultaneous growth in offshore exploration and onshore activity requiring distinct operational models, pricing strategies and technologies.
- As a result, oilfield services companies are shifting towards integrated offerings, expanding beyond traditional offerings into broader energy, industrial and asset optimisation solutions.
- Regional integration is increasing among Southern Africa’s energy companies as they look beyond single-country markets to optimise asset utilisation and capture cross-border opportunities.
What have been the defining market trends in Angola over the past year, and has Kaeso made any changes to adapt?
The market for oilfield services is changing. We are seeing more offshore exploration activity while, at the same time, onshore activity is also increasing. Under this dynamic, companies cannot keep the same organisational structure and remain relevant. As the nature of projects changes, so must operators.
As a result, we have been transforming our offering. Previously, we had four product lines, but now we are augmenting them into more comprehensive solutions to extend our operations beyond oil and gas into other energy and industrial sectors. We are clear about the direction we want to take and are incorporating new capabilities. In parallel, our consulting teams are targeting opportunities to integrate more of our services into projects.
The transformation is centred around diversification for more complete alignment with the needs of the market. Our downhole tools division, for example, has been redefined as a provider of drilling, completion and subsurface services to reflect our growing capabilities, and we are also growing our energy and industrial business, particularly with pre-commissioning work for oil and gas facilities. We are also enriching our position as one of Angola’s largest providers of cargo container units with broader offerings of modular and rental equipment.
Finally, we are introducing a specialised procurement solution focused on high-value items that are overlooked. Equipment sitting idle in one operator’s yard may offer little value while in storage, but it can be highly valuable to another operator in a different country. By locating and redeploying these assets, we can offer fast delivery and cost advantages, especially for items with long lead times.
How are you approaching the onshore and offshore segments to increase your chances of participation in new developments?
We have been working with IOCs since 2013, and over the past 13 years, we have built strong relationships with major operators such as TotalEnergies and Azule Energy. The onshore and offshore segments are fundamentally different and require completely different approaches. You cannot apply the same structure, the same pricing or even the same mindset to both.
The offshore segment is about high-tech, high-precision execution, so the focus is on robust services and advanced technology. The onshore game is something else entirely, as is evidenced by the scale of the required investments. A single offshore well can cost around USD 150 million to drill, or roughly 10 times the cost of an onshore well. This difference has significant implications for pricing, service models and operational approaches. The onshore is more about volume, efficiency and cost control.
Will this strategic shift require expanding your workforce or infrastructure?
It is less about expansion than transformation. Growth is not simply about adding people; it is about adding value and productivity. In many cases, you can achieve more by optimising your existing resources than by increasing headcount.
What we are doing now is consolidating the rapid growth we experienced in previous years. We are strengthening our leadership structure by bringing in highly experienced professionals from companies such as SLB and BP. We are also recruiting talent from operators, which gives us a deeper understanding of client expectations.
We are implementing a new governance model that allows us to better leverage our capabilities and scale our ambitions at a regional level. The objective is to ensure that all parts of the organisation are aligned and that we can operate more efficiently across different markets. So, rather than building more facilities or significantly increasing the workforce, we are focusing on quality, structure and scalability.
Are you taking any steps to expand your footprint outside Angola, particularly in Mozambique and Namibia?
Regional expansion is embedded in our strategy due to the structural limitations of individual national markets. Mozambique is a target, but it is part of a broader regional vision. The objective is not to enter new countries for the sake of it, but to build an integrated regional presence that allows us to serve clients more effectively.
Namibia, on the other hand, is a key focus, and we consider our base in Lüderitz one of our crown jewels. It is the only integrated oil and gas base in the area, and its proximity to the Orange Basin makes it strategically important.
We have already attracted major oil service companies to operate out of this facility, which validates its quality and advantageous position. However, it has limitations due to the characteristics of the port, so we have also established a presence in Walvis Bay. It is a smaller operation, but it is essential because that is where most of the operators are concentrated.
A country is not defined by one or two cities, however, so we are looking beyond these main hubs at opportunities in other regions that offer access to inland developments where future potential may emerge.