LUANDA,
Angola, April 8, 2021/ -- ENI announced on Tuesday 06 April, that it
had made a new discovery in Angola. The Italian Major’s latest oil
discovery in its Block 15/06 concession offshore Angola underlines why
Angola’s Prolific Basins and conducive regulatory framework continue to
prove attractive despite stiff competition from new frontiers like
Guyana and Suriname. It is also for this reason that the current bid
round for three onshore blocks in the Lower Congo Basin, and six onshore
blocks in the Kwanza Basin, run by the National Agency of Petroleum,
Gas and Biofuels (ANPG) is attracting a lot of interest from the
industry.
In the past twelve months, COVID-19 and resultant oil
price instability have threatened investment globally in seismic
acquisition, new drilling and other ‘non-essential’ activities. Yet what
has remained constant during this period is the magnitude of Angolan
oil and gas reserves, which not only represent some of the least
explored basins globally, but also appear to grow in size with each new
appraisal. According to an evaluation of its oil and gas prospects last
November, Angola is estimated to hold up to 57 billion barrels of oil
and 27 trillion cubic feet of gas – a substantial increase from previous
estimates of 8.2 billion barrels and 13.5 trillion cubic feet – which
would afford the country the largest oil reserves on the continent.
To
drive continued investment into frontier exploration, ANPG recently
released the timeline for the evaluation of its 2020 oil and gas
licensing round. The ongoing bid round is part of a revised Hydrocarbon
Exploration Strategy 2020-2025 that aims to expand research and
evaluation activities across sedimentary basins, increase
geological knowledge of Angola’s hydrocarbon potential and invite a new
wave of explorers to yield new discoveries. From onshore plays to
marginal field development, Angola’s prolific basins represent a worthy
competitor for global exploration capital, with new exploration expected
to account for over 50% of domestic production starting in 2025
(pre-COVID-19).
Onshore Plays
Angola’s
sedimentary basins – namely, the Lower Congo, Kwanza, Benguela and
Namibe – have long been home to world-class hydrocarbon discoveries,
which established the country as sub-Saharan Africa’s second-leading oil
producer. Naturally, these petroleum systems hold corresponding onshore
counterparts; indeed, early onshore exploration activities in Angola
have led to the discovery of approximately 13 commercial-sized oil
fields and one natural gas field, with reserves ranging in size between
five and 40 million barrels of oil. Significant upside potential remains
by tapping into deeper targets in both the rift and transitional phase
reservoirs. The ability to unlock onshore acreage via advanced seismic
and drilling technologies is apt – under the revised Hydrocarbon
Exploration Strategy.
Pre-Salt Geography
When
it comes to new exploration, Angola is still widely considered a prime
frontier, with emerging sub-Saharan producers chartering the course
toward bringing new output online. Specifically, the pre-salt basins,
have attracted attention due to their resemblance to Brazil’s prolific
pre-salt geology, which refers to reservoir rock located below a layer
of salt in ultra-deep water offshore that can exceed 2,000 meters in
thickness in some areas. In Angola, exploration of pre-salt basins has
become increasingly active following early discoveries in Blocks 20, 21
and 23 in the Kwanza Basin. The evaluation of these discoveries, coupled
with ongoing exploration efforts in Brazil, produced a comprehensive
geological model for pre-salt prospecting, which has since expanded to
include Block 0 offshore Cabinda. Unlike frontier markets, pre-salt
discoveries in Angola can be developed at a lower cost by utilizing
existing infrastructure, an important factor at a time when companies
are prioritizing developments with low break-evens, shorter development
cycles and minimized risk. As part of its efforts to focus on tiebacks,
infill drilling and other near-hub projects, French major Total is
exploring the development of a new pre-salt production hub in newly
acquired Blocks 21/09 and 20/11 in the Kwanza Basin.
A hybrid
online and physical roadshow for the current bid-round is scheduled for
April 12 at the Talatona Convention Centre in Luanda. This event will
provide the opportunity for investors to engage with the agency
regarding the blocks on offer, the data packages and the accessibility
studies, as well as touch upon environmental, logistical and local
content issues.
The Angolan Agency for Oil, Gas and Biofuels counts on Africa Oil & Power (AOP) (www.AfricaOilAndPower.com) – the continent’s leading energy investment platform – as a consultant. Please contact joao@africaoilandpower.com for further information.
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