Oando Plc has signed a production sharing contract (PSC) for Block KON-13 in Angola, marking a long-awaited entry into one of Africa's top oil producers and deepening the shift toward indigenous energy players on the continent.

The deal, confirmed by Angola's National Agency for Petroleum, Gas and Biofuels (ANPG), gives Oando a 45 per cent stake in the onshore block in the Kwanza Basin and makes it the operator. Its partners include Effimax Energy (30 per cent), state-owned Sonangol (15 per cent), and Walcot Ltd (10 per cent).

Block KON-13 is considered a high-potential asset. Angola's regulator estimates prospective resources of between 770 million and 1.1 billion barrels of oil. Two wells drilled to about 3,000 metres have already encountered oil and gas shows, reducing early-stage exploration risks and offering a clearer path to development.

The agreement represents Oando's first operated upstream venture outside Nigeria, a milestone that signals its ambition to build a pan-African oil and gas portfolio at a time when international oil majors are scaling back onshore exposure across the continent.

"The execution of this Production Sharing Contract advances our geographic footprint across Africa," said Wale Tinubu, Oando's group chief executive. "We bring proven technical expertise to this asset and a clear mandate to create value for our partners."

Oando's move into Angola follows a series of strategic expansions. In 2024, the company completed a $783 million acquisition of Nigerian Agip Oil Company assets from Italy's Eni, taking operatorship of several onshore oil mining leases in the Niger Delta. The deal was one of the largest transfers of upstream assets from an international oil company to a local firm in Nigeria.

Together, these moves highlight a broader trend reshaping Africa's energy sector. As global oil majors pivot toward offshore and lower-carbon investments, African independents are stepping in to take control of legacy and frontier assets.

Angola itself has been trying to revive investment in its onshore basins after decades of focus on deepwater production. The Kwanza Onshore Basin, which spans about 25,000 square kilometres, has seen renewed interest through licensing rounds aimed at unlocking untapped reserves in both pre-salt and post-salt formations.

Oando already holds interests in 14 oil and gas assets across Nigeria and São Tomé and Príncipe. Its portfolio includes more than 22,000 square kilometres of acreage and infrastructure capable of handling nearly 500,000 barrels of oil per day.

The KON-13 award not only strengthens Oando's upstream position but also reflects growing cross-border investment flows within Africa's energy industry, with regional firms increasingly leading projects once dominated by foreign operators.