Angola’s National Agency for Petroleum, Gas and Biofuels (ANPG), US supermajor Chevron, and state-owned Sonangol have agreed to a deal to develop ultra-deepwater Blocks 49 and 50 in the Baixo Congo Basin offshore Angola.
Angola’s National Agency for Petroleum, Gas and Biofuels (ANPG), US supermajor Chevron, and state-owned Sonangol have agreed to a deal to develop ultra-deepwater Blocks 49 and 50 in the Baixo Congo Basin offshore Angola. The project aims to play a crucial role in revitalizing Angola’s oil industry.
The decline in Angola’s oil output, which fell from a peak of 1.8 million barrels per day in 2015 to around 1.2 million barrels per day, prompted this strategic investment. “The investment in Blocks 49 and 50 is a major milestone in our strategy to stabilize production and increase reserves,” Angola’s Minister of Mineral Resources, Petroleum, and Gas, Diamantino Azevedo in an official statement.
Chevron will operate Blocks 49 and 50 with a 50% stake, while Sonangol Pesquisa & Produção holds the remaining 50%. The Blocks are structured under risk services contracts due to their operational complexity and high exploration risk.
In case of an exploration success, their developments could generate some $3.6bn of investment in each block, create thousands of jobs and generate substantial revenue for the Angolan government, according to Paulino Jerónimo, President of the ANPG.
Angola, Africa’s second-largest oil producer, relies heavily on its oil exports, which constitute around 90% of the country’s total exports. The signing of this agreement follows extensive negotiations between the government and the consortium, which began in 2022.
Estimates from the Ministry of Mineral Resources, Petroleum, and Gas suggest that discoveries in both blocks could boost Angola’s oil production by 33% and increase annual revenue by $2.5 billion.
New deals in Equatorial Guinea
In a separate deal, Chevron and state-owned GEPetrol, have signed two new production sharing contracts with Equatorial Guinea. Blocks EGO6 and EG11 are strategically located southwest of the Zafiro oilfield and hold the potential for significant oil deposits.
These contracts outline commitments and responsibilities for both companies and the government, covering aspects such as minimum investments, exploration programmes, sustainable development, royalties, and profit sharing.
The Equatorial Guinea contracts represent a $2 billion investment and underscore the country’s efforts to attract exploration and production activities. Equatorial Guinea, with its proven offshore plays, aims to play a pivotal role in supporting energy security in West Africa.
Interested in hearing more about the oil, gas and energy industry? Attend AOW, 7-10 October 2024:
The decline in Angola’s oil output, which fell from a peak of 1.8 million barrels per day in 2015 to around 1.2 million barrels per day, prompted this strategic investment. “The investment in Blocks 49 and 50 is a major milestone in our strategy to stabilize production and increase reserves,” Angola’s Minister of Mineral Resources, Petroleum, and Gas, Diamantino Azevedo in an official statement.
Chevron will operate Blocks 49 and 50 with a 50% stake, while Sonangol Pesquisa & Produção holds the remaining 50%. The Blocks are structured under risk services contracts due to their operational complexity and high exploration risk.
In case of an exploration success, their developments could generate some $3.6bn of investment in each block, create thousands of jobs and generate substantial revenue for the Angolan government, according to Paulino Jerónimo, President of the ANPG.
Angola, Africa’s second-largest oil producer, relies heavily on its oil exports, which constitute around 90% of the country’s total exports. The signing of this agreement follows extensive negotiations between the government and the consortium, which began in 2022.
Estimates from the Ministry of Mineral Resources, Petroleum, and Gas suggest that discoveries in both blocks could boost Angola’s oil production by 33% and increase annual revenue by $2.5 billion.
New deals in Equatorial Guinea
In a separate deal, Chevron and state-owned GEPetrol, have signed two new production sharing contracts with Equatorial Guinea. Blocks EGO6 and EG11 are strategically located southwest of the Zafiro oilfield and hold the potential for significant oil deposits.
These contracts outline commitments and responsibilities for both companies and the government, covering aspects such as minimum investments, exploration programmes, sustainable development, royalties, and profit sharing.
The Equatorial Guinea contracts represent a $2 billion investment and underscore the country’s efforts to attract exploration and production activities. Equatorial Guinea, with its proven offshore plays, aims to play a pivotal role in supporting energy security in West Africa.
Interested in hearing more about the oil, gas and energy industry? Attend AOW, 7-10 October 2024:
_weblogo_2.png?ext=.png)
.jpg?ext=.jpg)
