Sonangol E.P. has implemented a series of key initiatives between 2019 and 2024 to address declining production, the impacts of the COVID-19 pandemic, and improve operational efficiency.
Key milestones include the development of a strategy to mitigate production declines, restoring water injection systems, restarting production in Block 3/05A, and achieving a 30% production increase in Block 3/05 in 2023, equating to 6,000 barrels per day.
According to a report seen by Jornal de Angola, by April 2024, the national oil company’s production averaged 26,000 barrels per day, representing 2.4% of the country’s total production, which exceeds 1.1 million barrels per day.
The implementation of new block concession programs by the National Agency for Oil, Gas, and Biofuels (ANPG) has helped reverse the decline caused by field maturation and the lack of new investments up to 2018.
The report further reveals that in 2024, Sonangol carried out interventions on 29 wells, leading to a scheduled shutdown to improve operational efficiency.
As a result, production in November averaged 27,000 barrels per day, representing a 2.4% increase, while water injection capacity in Block 3/05 increased to 100,000 barrels of water per day (BWPD).
The company’s target for 2024 is a daily production of 31,948 barrels, equating to 3.19% of national production.
The expectation is for significant growth by 2025, driven by contributions from assets in the second phase of the Caco-Gazela project, Pacassa Sudoeste, the first phase of the Punja project, Búfalo Norte, UM6, and UM7.
Projections for 2026 suggest that Sonangol will meet its goals under the Incremental Production Program, spearheaded by the Ministry of Mineral Resources, Petroleum, and Gas (Mirempet), under Minister Pedro Azevedo.
This program aims to increase production quotas and share dividends among operating oil companies. The second phase of the Punja project is expected to begin, and by 2027, the second phase of Búfalo Norte will be launched, further strengthening production.
Sonangol’s Exploration and Production Strategy focuses on consolidating its position as an operator of mature fields, developing expertise in onshore operations, and enhancing capabilities in complex blocks.
This strategy aims to intensify reserve replacement and mitigate the steep decline in hydrocarbon production.
According to the report, exploration in Block 5/06 identified potential for approximately 1.5 billion barrels of STOOIP.
Investments in workovers and infill wells in Block 3/05 are expected to increase production, while in non-operated blocks, production is projected to rise by 77.86 million barrels by 2027 due to new production in Blocks 15/06, 17/06, and 20/11.
Key success factors in Sonangol’s activities include the exploration plans for Blocks 5/06 and 27, partial divestment in specific operated blocks, and full operations by Sonangol in Blocks 5/06 and 27.
Other vital factors include approval for development projects in the second quarter of 2024, availability of financial resources from contractors in operated blocks, and cooperation in Blocks 20/11 and 21/09 with TotalEnergies and in Block KON-4 with RSK.
Sonangol also ensured the supply of natural gas to fertilizer industries, providing 125 million cubic feet of dry and wet gas (mmscf/d).
In 2023, Sonangol completed the Falcão project, bringing a gas processing unit into production in the Zaire province.
This unit receives, transports, and distributes natural gas from Angola LNG, with major customers including the Soyo Combined Cycle Plant and AMUFERT Fertilizer Plant.
With an average annual growth rate of 10% from 2024 to 2027, Sonangol forecasts an increase in sales from 501,000 metric tons to 667,000 metric tons and natural gas sales to rise from 23 MCFD to 68 MCFD, ensuring self-sufficiency in products.
