The Council of Ministers of Angola’s National Oil, Gas & Biofuels Agency (ANPG) approved the country’s incremental production initiative for 2024.
This initiative, expected to be enacted by President João Lourenço later this year, introduces new incentives to boost production in active blocks.
It aligns with national objectives to maximize output at producing fields, offering license extensions and favorable fiscal terms to investors, thus stimulating cost recovery regardless of well results.
A significant milestone under this initiative is the recent oil discovery at the Likembe-01 well in Angola’s Block 15 by ExxonMobil.
This discovery, made in May in water depths of 1,200 meters within the Kizomba B development area, represents the first well drilled as part of the incremental production initiative.
The well was drilled between February and April 2024 in collaboration with Azule Energy, Equinor, and Angola’s state-owned Sonangol.
Likembe-01 is the first oil find following the 40,000 bpd Bavuca South-1 discovery in 2022.
Block 15, operated by ExxonMobil, has seen 17 previous discoveries and holds approximately four billion barrels of recoverable resources, making it one of Angola’s largest oil-producing blocks.
The government’s incremental production law is anticipated to support and encourage near-field exploration, aiming to increase output at producing fields nationwide.
The initiative is also expected to benefit Angola’s offshore Block 17. In March, the ANPG and TotalEnergies signed a letter of agreement for an investment of around $7 billion.
This investment aims to extend the life of the Dalia FPSO platform, potentially increasing its production to 500 million barrels of oil by 2045, up from an expected 490 million barrels by 2030.
This law is part of a series of recent regulatory changes designed to revitalize Angola’s oil and gas industry, a cornerstone of the country’s economic growth.
Since 2017, Angola has implemented significant reforms, including a six-year licensing round introduced in 2019 and its exit from OPEC in December 2023 to safeguard domestic production targets.
In line with Angola’s long-term strategy to increase oil production to two million bpd, the Angola Oil & Gas (AOG) 2024 conference and exhibition will address the most critical opportunities and challenges within the industry.
Set to take place in Luanda from October 2-3, AOG 2024 will feature a multi-track program, including presentations by industry experts on enhancing incremental production through technology, driving infrastructure-led exploration, and maintaining well integrity.
This premier deal-signing platform will attract companies from across the regional and global oil and gas value chain, fostering strategic partnerships and driving investments in the sector.
