Australian exploration and production company Red Sky Energy has solidified its entry into Angola’s oil and gas sector by finalizing a Risk Service Contract (RSC) for Block 6/24 in the Kwanza Basin. This milestone marks the company’s first venture into the resource-rich country.
The agreement, signed on December 31, 2024, involves partnerships with Angola’s upstream regulator National Agency for Oil, Gas, and Biofuels (ANPG), Sonangol Exploração e Produção SA, and ACREP Exploração Petrolífera SA, granting Red Sky Energy a 35% interest in the offshore block.
“Block 6/24 contains a commercially promising oil discovery that the joint venture partners plan to evaluate for early production and cash flow,” said Red Sky Energy CEO Andrew Knox.
He added, “The block also holds significant resource potential, supported by comprehensive 2D and 3D seismic data, which we aim to further explore to enhance its economic value.”
Key Highlights of Block 6/24
- Location: Spanning 4,930 square kilometers, the block is situated 12 kilometers offshore.
- Discovery: It includes the Cegonha oil discovery, which is deemed commercially viable.
- Development Plans: The joint venture will establish an operating agreement, secure parliamentary ratification of the RSC, and conduct three years of geological and geophysical studies. A decision to drill an optional well is planned for Year 4, based on the findings.
At the 2024 Angola Oil & Gas (AOG) Conference, Knox emphasized the company’s interest in Angola’s exploration and production opportunities.
“Angola offers a favorable environment for oil and gas investments, with robust deal flow and opportunities to join existing production blocks,” Knox noted.
He highlighted Angola’s supportive local content policies and potential for downstream integration as key factors driving Red Sky Energy’s focus on the country.
The RSC agreement is a direct outcome of connections fostered at the AOG Conference, underscoring the event’s role as a premier platform for deal-making in Angola’s oil and gas sector.
By facilitating partnerships and attracting investment, the conference continues to be instrumental in unlocking the country’s energy potential.
This strategic move positions Red Sky Energy to capitalize on Angola’s abundant resources while diversifying and de-risking its asset portfolio.
