Exploration

Red Sky is also eyeing production from the Cegonha oil discovery. (Image source: Adobe Stock)

Australia-based production and exploration company Red Sky Energy turns to Angola to advance expansion and diversify asset portfolio as it closes a risk service contract (RSC) with the Angolan National Agency for Oil, Gas and Biofuels (ANPG) to acquire interests in offshore Block 6/24 alongside ACREP Exploracao Petrolífera SA and Sonangol Exploracao e Producao SA 

Sonangol E&P is the operator of the Block 6/24 with a 50% participating interest. Red Sky Energy will hold a 35% participating interest, and ACREP will hold the remaining 15% participating interest. Block 6/24 is located 12 kilometres offshore Angola in the Kwanza Basin, in water depths ranging from 70 to 80 metres. The Block is covered by 1,531 sq km of 2D seismic and 1,465 sq km of 3D seismic.

"Over the past few years, Red Sky has been evaluating opportunities to acquire producing or near-production assets. The company is actively pursuing prospects created by major energy companies' global shift away from fossil fuels. The signing of the RSC Block 6/24 marks our first entry into Angola and is a transformational milestone for Red Sky. Block 6/24 contains a potential commercial oil discovery that the JV partners plan to evaluate for early production and cash flow generation. The Block also has substantial resource potential based on the existing 2D and 3D seismic data. The JV partners plan to prove up these resources, further improving the economics of the Block. Several parties have expressed interest in providing 100% project finance for the development. This transaction enhances our asset base with a high prospectivity offshore block and provides substantial diversification benefits, complementing our Innamincka gas and Killanoola oil projects in South Australia. This strategic move positions Red Sky for sustained growth and stability by balancing our investment portfolio across different geographical regions and resource types,” said Red Sky managing director, Andrew Knox. 

Angola's exploration and production industry continues to see global interests with Sequa Petroleum being one of the latests to acquire stakes in the region last October. 

Cegonha discovery

Red Sky is also eyeing production from the Cegonha oil discovery within the block, which can bring in substantial promise for the company. 

Once the RSC gets approval from the Angolan Parliament, a Joint Venture Operating Agreement (JVOA) will become applicable to designate roles, responsibilities and operational framework. The first three years will be devoted to seismic reprocessing and detailed subsurface evalutaion. The contract also includes scope for an optional well decision which will come into effect on the fourth year based on the studies conducted. 

The RSC is valid for a six-year exploration and appraisal period which extends to another 30 years only if comercial discovery is feasible. 

ANGP is inviting tenders for as many as 10 offshore blocks this year. 

Repsol will test the Memonyat Formation. (Image source: Libya NOC)

Putting an end to over a decade-long break, Spain based exploration and production company Repsol has begun drilling operations in the Murzuq Basin in Libya 

Situated around 800 kms from Tripoli and just 12 kms from the country's largest oilfield, Sharara, the company is drilling the A1-2/130 (Neser Prospect) exploratory well. It will test the Memonyat Formation, targetting a final depth of 6,050 ft. 

Back-to-back wins

This adds another feather in Libya's cap following Sirte Oil's promising discovery from the Zelten oilfield. 

With ambitions to double oil production, Libya is also prioritising licensing rounds, inviting both domestic companies and international tenders. 

Partners continue to integrate and study the newly acquired data. (Image source: Sintana Energy)

The Mopane-2A well on PEL83-governed blocks 2813A and 2814B in the Orange Basin, Namibia has encountered good hydrocarbons presence following drilling and logging by operator Galp Energia 

Other partners in these blocks are the National Petroleum Corportaion of Namibia - NAMCOR and Custos Energy, holding 10% interestes each.

Spud early December 2024, hydrocarbons were reported from Mopane-2A from not just one but two reservoirs; AVO-3 revealed a column of gas-condensate with a thin net pay in the reservoir sweet spot, while a smaller reservoir from AVO-4 saw a column of light oil.

Both findings appeared with good quality sands, confirming easy porosities and permeabilities, high pressures and low fluid viscosity characteristics, similar to the results from Mopane-1A appraisal well. The presence of CO₂ reported was minimum, and there was no H₂S concentrations. Like the other Mopane wells, this area too had no water contacts. 

Data integratration 

As the partners continue to integrate and study the newly acquired data to understand the commercial viability of these discoveries, the drillship sails ahead to the Mopane-3X exploration well location which includes AVO-10 & AVO-13. 

Even before the drilling of additional exploration and appraisal wells began, the Mopane complex already held more than 10 billion barrels of oil equivalent.

“The ongoing success at Mopane is emblematic of the world class scale and quality of the complex. We look forward to further exploration and appraisal activities anticipated over coming months to further unveil the unmatched quality of our position at the heart of Namibia’s Orange Basin.” said Robert Bose, chief executive officer of Sintana Energy, which holds a 49% indirect interest in Custos Energy. 

Sirte has deployed advanced reservoir mapping-whil-drilling technology. (Image source: NOC Libya)

The Zelten oilfield onshore Libya revealed exceptional flowrate following a successful drilling campaign by Sirte Oil and Gas Production and Manufacturing Company

More than 2,300 barrels per day of water-free crude oil was seen from the horizontal Well C353H that extended approximately 900 ft. Sirte had deployed the advanced Geosteering HD real-time, reservoir mapping-while-drilling technology for the campaign. 

As Libya's National Oil Corporation continues to prioritise production optimisation, Sirte has been seeing record count since 2007 with 103,000 bopd. 

Export opportunities

Libya has also remained a much acclaimed destination for export opportunities. Speaking at LEES 2024, Vaclav Bartuska, special envoy for energy security from the Czech Republic, had emphasised that 'for decades to come, the world will need oil and gas. Libya can help with that'.

Italy-based oil major Eni too has big ambitions in Libya.