The RSCs lay the foundation for the development of Block 49 and Block 50. (Image source: African Energy Chamber)

A kick-off for the exploration phase, Chevron-subsidiary Cabinda Gulf Oil Company Limited has signed two risk service contracts (RSC) for Block 49 and Block 50 in the ultra-deep waters of Angola’s Lower Congo Basin

Initially awarded the concessions by way of Presidential Decree in January, the RSCs lay the foundation for the development of the blocks. 

Angola remains a coveted destination for oil majors with the latest instance being TotalEnergies' final investment decision (FID) on the Kaminho deepwater project.

While Chevron has been in Angola for 70 years, Block 49 and 50 represents the company’s first operated assets outside of the existing Cabinda concessions. 

Earlier this year, the company signed an agreement with Angola’s national concessionaire – the National Oil, Gas & Biofuels Agency – to conduct seismic surveys in Blocks 49 and 50. 

With interests in Block 0 and 14, which produce an average of 70,000 barrels of liquids per day and 259 million cubic feet of natural gas per day, Chevron enjoys a 26% market share in Angola. 

Block 0, whose concession has been extended to 2050, is comprised of 21 fields, while Block 14 contains nine fields.

By an agreement signed with the government in 2020, Chevron not only received the go-ahead to develop Block 14 with improved fiscal terms, but also a production sharing contract extension to 2028.

Multiple projects

Additionally, in 2023, Chevron signed a production sharing agreement to manage operations within the Block 14/23 concession area.

The concession is situated in the Zone of Common Interest shared by Angola and the Democratic Republic of the Congo, with the agreement seeing Chevron act as operator with a 31% stake in the block.

Chevron holds non-operating interests in the Angola LNG plant as well, which processes gas from offshore concessions, thus generating critical revenue for the country through LNG exports. 

Specifically, the Chevron-operated US$300mn Sanha Lean Gas Connection Project is a strategic initiative that aims to address a supply gap at Angola LNG. The project involves the development of a platform that ties into the existing Sanha Condensate complex and features pipelines connecting Block 0 and 14 to the Angola LNG facility.

During EGYPS 2022, Chevron was recognised for its achievements in equality, inclusion and diversity in the oil and gas industry.

Chevron has also introduced low-carbon solutions across Angola’s oil and gas industry.

The multinational signed an agreement with the government in October 2023 to utilise nature-based and technological carbon offsets and lower-carbon intensity fuels such as hydrogen for enhanced production. 

Block 1 is considered one of the largest blocks in the entire Orange Basin. (Image source: Eco Atlantic)

Oil and gas exploration company, Eco (Atlantic) Oil & Gas Ltd's subsidiary Azinam South Africa Limited will farm-in into Block 1 offshore South Africa Orange Basin 

With a 75% acquisition of the block from Tosaco Energy, Eco will become operator of a new Exploration Right. 

The remaining 25% will be transfered by Tosaco to a newly formed South African entity with a broad-based black economic empowerment (B-BBEE) rating, OrangeBasin Oil and Gas (Proprietary) Limited.

From Mopane to Venus wells, Block 1 is surrounded by rich discoveries. In March, Sintana Energy reported the third consecutive discovery of light oil in the Mopane complex. 

A triangular-shaped block in the Orange Basin, Block 1 runs along Namibia and South Africa by an area of 19,929 sq km. The eastern side of the block is approximately 174 km off the South African shoreline, reaching out some 263 km west into deepwater in the Orange Basin. 

Over the next three years, Eco, along with its in-house exploration team, will complete the interpretation and analysis of the already acquired 2D and 3D seismic data from the block. 

Strategic play

On the other hand, following the AJ-1 oil discovery post Gazania-1 drilling in 2022, the company has submitted all the documentation and environmental audits to the Petroleum Agency of South Africa to give up 50% of working interest offshore Block 2B in South Africa. Early this year, Eco transferred some of its interests in Block 3B/4B to Africa Oil Corp as well.

Colin Kinley, co-founder and chief operating officer of Eco Atlantic, said, "The Orange Basin continues to prove to be one of the newest and most prolific plays in the world and is running similar statistics to our Guyana play. Following completion of this farm-in, Eco will have one of the largest blocks in the entire Orange Basin. This is a strategic play for Eco that we have worked on over the past year, focusing on both oil and gas potential, and where we believe there are significant near-shore prospective gas resources. There are inboard gas discoveries on the block, Kudu to the North, and multiple discoveries in the Ibhubesi field to the South. With the reach of the block some 250km out into the Atlantic, this puts the West end of the Block into highly prospective opportunities for oil being just South and on trend with Shell's Graff discovery and Galp's Mopane discoveries, and North of our 3B/4B Block oil targets recently farmed out to TotalEnergies and QatarEnergy."

Preliminary evaluation indicated rise in Hibiscus gross recoverable reserves. (Image source: Adobe Stock)

BW Energy announced a substantial oil discovery on the northern flank of the Hibiscus field, post conclusion of the drilling and logging of the DHIBM-7P pilot well

The oil is with good reservoir quality and a material uplift to the Hibiscus area. 

Preliminary evaluation indicated rise in Hibiscus gross recoverable reserves (mid-case) of approximately 8-12 mn bopd. Gross production from the Dussafu licence is approximately 23,200 barrels of oil per day, amounting to a total gross production of approximately 2.14 mn barrels of oil. 

The well will be completed as a development well later in 2024.

First Gamba-Dentale accumulation in Hibiscus 

The DHIBM-7P development adds to BW Energy's previous find in DHBSM-2P pilot well which too revealed good prospects. 

The DHIBM-7P pilot was drilled from the MaBoMo production platform to a total depth of 3,941 metres.

Drilled by the Borr Norve jack-up rig the target area is located approximately 1.5 kms north-northwest of the MaBoMo. 

Notably, the hydrocarbon column extends across the boundary between the Gamba and the underlying Dentale formation.

This is the first example of a common Gamba-Dentale hydrocarbon accumulation in Hibiscus Field.

The current operation in Dussafu is to complete the development well (DHBSM-2H) in the northern flank of the Hibiscus South field that was recently successfully appraised.

The acquisition increases Afentra's interest in Block 3/05 to 30%, and that in Block 3/05A to 21.33%. (Image source: Adobe Stock)

Afentra has completed the Azule acquisition offshore Angola with a 12% non-operating interest in Block 3/05, and 16% non-operating interest in Block 3/05A

This increases Afentra's interest in Block 3/05 to 30%, and that in Block 3/05A to 21.33%.

Well on schedule post government approval, this is a major development for the company since the sale and purchase agreement between Azule Energy Angola Production B.V. and Afentra (Angola) Ltd was announced last year on 19 July.

The acquisition makes Afentra the owner of a total 480,000 bbls of crude oil stock. 

Combined gross production for the first four months of 2024 has averaged 23,000bopd (Net: ~6,800, bopd).

With 45 interventions planned over two campaigns, Afentra will continue its light well intervention programme that began during 2023, continues into 2024. 

The next sale of crude oil cargo (~450,000 bbls) is planned in June.

Focus on production optimisation

Afentra CEO Paul McDade, who has always appreciated the investment environment of Angola, said, “The completion of the Azule Acquisition is the final step in the complex process of acquiring a material equity position in both Block 3/05 (30%) and Block 3/05A (21.33%) through three separate transactions. We have now achieved our first goal of having significant exposure to these world-class production and near-term development assets. The next step, working closely with our Joint Venture partners, is to deliver the full potential of these assets for the benefit of all of our stakeholders while also reducing the carbon footprint of the assets. As with the previous two transactions the acquisition structure ensures that Afentra benefits from the net cash flow from the assets while working through the completion process, significantly reducing the cash payment at completion. I would like to thank Azule, ANPG and all the other parties involved for their pragmatism and support through this complex process. The Block 3/05 asset continues to perform strongly following the successful implementation of an ongoing work programme designed to optimise production from the existing wells. The completion of this transaction presents a strong growth platform for Afentra to capitalise on further compelling opportunities in Angola as well as in target markets in West Africa as we seek to build Afentra into a leading African focused independent.”