In a pivotal move aimed at bolstering Angola’s energy sector, the National Oil, Gas and Biofuels Agency (ANPG) finalized three significant risk service contracts in partnership with Azule Energy.
The contracts, signed in Luanda, mark a strategic venture for the prospecting, research, and exploration of blocks 46 and 47, in collaboration with Equinor and Sonangol Pesquisa & Production.
Additionally, a partnership was formed for block 18/15 with the state-owned company, Sonangol.
The ceremony, graced by the presence of José Barroso, the Secretary of State for Oil and Gas, signifies a concerted effort by ANPG to counter the decline in Angola’s oil production.
Barroso, in his address, highlighted the challenges faced by the oil sector, both domestically and internationally, underscoring their potential impact on the country’s financial revenues.
Angola’s economy continues to exhibit a significant reliance on fossil fuels, further emphasizing the critical need for strategic investments in the sector.
Paulino Jerónimo, ANPG’s PCA, detailed the distinct types of contracts involved, outlining the nuances of production sharing, association, and risk service contracts.
He elucidated that these agreements vary in their compensation structures, encompassing fiscal considerations, profit-sharing, and tax-based payments, depending on the contract type and the State’s involvement in oil profits.
Jerónimo stressed the primary objective of these contracts: to incentivize substantial investments in oil exploration and production, prioritizing the discovery of oil reserves over financial bonuses.
Azule Energy’s CEO provided insights into the company’s operational capacity, citing a daily production of approximately 210 thousand barrels of oil.
Emphasizing the potential of the unexplored blocks 46 and 47 as a frontier exploration zone, the CEO identified this endeavor as a catalyst for both the company and Angola’s energy sector, fostering new opportunities and advancements.
The distribution of stakes among the involved parties was delineated, with Azule Energy retaining a significant interest in the blocks.
They will operate blocks 46 and 47 with a 40 percent interest, and hold an 80 percent stake in Block 18/15. Sonangol Pesquisa & Produção and Equinor will also hold substantial shares in the blocks, signifying a collaborative effort in the exploration of these territories.
Spanning an expansive area of around 8,700 square kilometers in the deep and ultra-deep waters off Angola’s coast, these three licenses present promising prospects for oil exploration and extraction, aiming to bolster Angola’s energy landscape and invigorate its economic potential.
