Angola’s Parliament Approves Block 14 Oil Concession Changes for Joint Exploration with DR Congo

Angola’s Parliament Approves Block 14 Oil Concession Changes for Joint Exploration with DR Congo

Angola’s Parliament unanimously approved a request this Wednesday for authorization to modify the oil concession for Block 14, which includes areas of joint exploration between Angola and the Democratic Republic of Congo (DRC).

In his presentation, the Secretary of State for Oil and Gas, José Barroso, explained that the proposed changes involve detaching the Negaje and Menongue development areas from Block 14 for integration into the Block 14/23 concession.

This adjustment will help redefine the geographical limits of both blocks, enhance geological knowledge, mitigate production decline, and replenish reserves estimated at 298 million barrels of oil.

The agreement includes a signing bonus of $15 million, an annual fixed production bonus of $500,000 for 15 years from the start of production, and the potential for $5.7 billion in revenue from taxes and receipts.

Barroso noted that the national concessionaire signed a production-sharing contract with the current contractor group for Block 14, which includes Chevron (operator), Azule Energy, Sonangol Pesquisa & Produção, Angola Bloco 14BV, and Galp.

Located in the Lower Congo Basin, the Block 14 area spans water depths of 600 to 1,000 meters. The Negaje and Menongue areas extend beyond Angola’s territorial limits, entering a maritime zone of shared interest between Angola and the DRC.

Responding to concerns raised by parliamentarians, Barroso assured that the same contractor group would operate Block 14/23 and that all development would adhere to Angolan law.

He explained that the DRC had agreed to this arrangement, relying on Angola’s expertise and national concessionaire, with some involvement from the Congolese concessionaire.

Barroso emphasized the importance of the cooperation between the two nations to avoid conflicts and build on positive past experiences in oil field exploration.

He expressed optimism that successful outcomes could lead to further joint ventures in areas of mutual economic interest.

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