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Exploration

ANPG is inviting companies to participate in the upcoming licensing round. (Image source: Adobe Stock)

Angola's National Oil, Gas & Biofuels Agency will launch a limited tender in Q1 2025, offering 10 blocks in the Kwanza and Benguela Basins – including 5 marginal fields ­– marking a first for the country

Amid efforts to entice investment in blocks opportunities, the ANPG is inviting companies to participate in the upcoming licensing round. Negotiations are already open and companies are invited to contact the ANPG ahead of the official licensing launch.
To support investment, the African Energy Chamber (AEC), ANPG and EnerGeo Alliance hosted a webinar to discuss exploration opportunities in Angola. The webinar comes ahead of international conferences taking place in Cape Town – African Energy Week: Invest in African Energy and Angola­ – Angola Oil & Gas ­– and drew insight into mature and frontier prospects in Angola.

Angola sub-Saharan Africa’s second biggest oil producer
production averaged 1.8 million barrels per day (bpd) between 2009 and 2015
, national output saw a sharp decline from 2016 onwards owing to field maturation.
The government has been working hard to address these declines, introducing regular block opportunities through tenders and permanent offer programmes.

“We have been implementing a series of reforms. We approved a strategy in 2019 to license more than 50 blocks by 2025. So far, we have executed four licensing rounds and awarded more than 30 new concessions. We have another one planned for 2025 where we are projecting to put up another ten blocks offshore,” stated Alcides Andrade, ANPG Board Member.

Angola's National Oil, Gas & Biofuels Agency will launch a limited tender in Q1 2025, offering 10 blocks in the Kwanza and Benguela Basins – including 5 marginal fields ­– marking a first for the country. Amid efforts to entice investment in blocks opportunities, the ANPG is inviting companies to participate in the upcoming licensing round. Negotiations are already open and companies are invited to contact the ANPG ahead of the official licensing launch.
To support investment, the African Energy Chamber (AEC), ANPG and EnerGeo Alliance hosted a webinar to discuss exploration opportunities in Angola. The webinar comes ahead of international conferences taking place in Cape Town – African Energy Week: Invest in African Energy and Angola­ – Angola Oil & Gas ­– and drew insight into mature and frontier prospects in Angola.

As sub-Saharan Africa’s second biggest oil producer, Angola offers a wealth of opportunities for E&P players. While production averaged 1.8 million barrels per day (bpd) between 2009 and 2015, national output saw a sharp decline from 2016 onwards owing to field maturation. The government has been working hard to address these declines, introducing regular block opportunities through tenders and permanent offer programs.

“We have been implementing a series of reforms. We approved a strategy in 2019 to license more than 50 blocks by 2025. So far, we have executed four licensing rounds and awarded more than 30 new concessions. We have another one planned for 2025 where we are projecting to put up another ten blocks offshore,” stated Alcides Andrade, ANPG Board Member.
Industry reforms have seen companies that have been operating in the country since the 1900s continue to invest. These include energy majors TotalEnergies, Chevron, bp and Eni – now operating as Azule Energy. Reforms have also been directed towards incremental production efforts to maximize output at existing fields.

According to Andrade, “The plan is to do everything we can to keep production above one million bpd. We are currently producing about 1.1 million bpd and have a diverse range of opportunities for different size companies as well as opportunities in onshore blocks, shallow waters and deepwater opportunities.”
Angola’s 2025 limited tender will feature Block 40, Block 25, Block 39 and Block 26 in the Benguela Basin as well as Block 22, Block 35, Block 37, Block 38 and Block 36 in the Kwanza Basin. Additionally, the country has four onshore blocks available; 11 blocks on permanent offer; and five marginal fields ready for exploration. The marginal fields are situated in producing blocks with proven systems and can be awarded individually. Companies that demonstrate interest will receive an invitation letter once the 2025 tender launches.

In addition to block opportunities, the ANPG is committed to strengthening sub-surface data across both mature and frontier fields. At present, Angola’s basins offer a library rich with 2D and 3D seismic data, however, more data is required to support exploration efforts. Ross Compton, Director: Global Policy, Energeo Alliance, stated that “The exploration industry is making energy possible for the world. Africa needs energy for industrialization, the movement of goods and people and climate resilience. We believe that through collaboration both within Africa and Angola is very bright and EnerGeo Alliance is ready to partner…”

Verner Ayukegba, Vice President, AEC, emphasized the wealth of opportunities that are available across Angola’s oil and gas industry, underscoring that investing in Angola has never been more attractive.

“Let’s capitalize on these opportunities that are readily available. We look forward to welcoming to Angola Oil & Gas (AOG), where these opportunities and many others will be on display. Book your tickets to meet ANPG in Angola from October 2-3,” he said.

The webinar comes ahead of the AOG 2024 Conference & Exhibition, the country’s premier event for the oil and gas industry.

Returning for its fifth edition from October 2-3 in Luanda, AOG 2024 takes place under the theme Driving Exploration and Development Towards Increased Production in Angola and connects investors to project opportunities in Angola. For more information, visit www.AngolaOilandGas.com.

The webinar also serves as a precursor to the African Energy Week: Invest in African Energy conference, taking place from November 4-8 in Cape Town. Representing the biggest energy event on the continent, the conference takes place under a mandate to make energy poverty history by 2030 and promotes investment in oil and gas in Africa. Companies interested in Angola’s oil and gas opportunities will gain insight into available acreage and partnership prospects at this year’s event. A dedicated Invest in Angola Energies session functions as a platform to connect companies while delving into exploration, production and infrastructure projects. For more information, visit www.AECWeek.com.

The West African country will be an ideal host to AEB. (Image source: African Energy Chamber)

Following a meticulous review process by the Africa Energy Bank Headquarters Ministerial Selection Committee, Abuja, Nigeria, emerged to be the unanimous choice made during the 45th Extraordinary Session of the African Petroleum Producers’ Organisation Ministerial Council chaired by the Minister of Hydrocarbons of the Republic of the Congo, Bruno Jean Richard Itoua

The strategically rich Nigeria fell perfectly in place with the criteria of judgement that prioritised socio-economic factors, safety, security and accessibility. Honouring the decision, Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources (Oil), assured the Council that the country will provide the necessary facilities for the bank’s timely and effective establishment. 

Nigeria beat Algeria, Benin, Côte d’Ivoire, Ghana and South Africa, that were also competing for the position. 

Garnering international attention

Nigeria has garnered investment interests not just from international oil majors, but supranational institutions like the World Bank which approved a US$2.25bn package to the country last month as assistance for oil revenue management, fiscal sustainability, economic growth and public services enhancement. Last year, the country successfully weilded a series of strategic engagements with 15 international and national oil and gas companies working in Nigeria – Chevron, TotalEnergies, Shell, NAOC, ExxonMobil, Seplat, Heirs Holdings, Waltersmith, First E&P to name a few. These talks resulted in significant investment opportunities with an estimated US$55.2bn by 2030, of which US$13.5bn is expected to be invested in 2024. 

TotalEnergies, for instance, reached US$550mn final investment decision (FID) with the Nigerian National Petroleum Corporation in June to develop the Ubeta gas field. 

The West African country will thus be an ideal host to AEB that aims to address Africa's oil and gas funding challenges in the face of global energy transition. A joint venture by APPO and African Export-Import Bank (Afreximbank), AEB will focus on financing both fossil fuels and renewable energy sources across the continent with an initial share capital of US$5bn.

The company is eager to start drilling its next ARF well. (Image source: TAG Oil)

TAG Oil Ltd announced that it is continuing to produce oil and unload fracture fluid from the BED4-T100 (T100) horizontal well in the Badr-1 Oil Field in the Western Desert of Egypt, and has commenced shipping the crude oil for further treating and handling

The current T100 oil production is 400 barrels of oil per day, and associated gas-oil ratio is 150 standard cubic feet per barrel. Production rates represent approximately 130 barrels of oil per day per 100 meters of lateral horizontal length completed in the Abu-Roash “F” (“ARF”) unconventional tight, carbonate reservoir, which is better than analogous reservoirs, and aligned with performance simulation forecasts.

The newly installed jet pump system is designed to lift 600 barrels of fluid per day at peak efficiency and current fluid rates have fluctuated between 400 and 500 barrels per day. The company continues to optimize productivity of the T100 well by gradually increasing pump speed and reducing in-take pressure to reach the best stabilized production rate. The company has now sent crude oil shipments to two third-party receiving terminals in the Western Desert and are engaging in agreements and implementing infrastructure for regular shipments of ARF crude oil in the third quarter. Total oil produced from T100 to date is in excess of 10,000 barrels.

Toby Pierce, TAG Oil’s CEO, said “We are excited to be trucking oil to two nearby terminals for further treating and handling. With the encouraging results of this discovery well, we are eager to start drilling our next ARF well with a full 1,000-meter lateral section. We are also progressing various business development efforts to increase our footprint on this play in Egypt, and we have other ongoing initiatives in the broader Middle East region.”

The contracts were signed in ONHYM headquarters in Morocco. (Image source: ONHYM)

In line with the strategy to develop and promote Morocco's hydrocarbon resources, the general director of Office National des Hydrocarbures et des Mines (ONHYM), Amina Benkhadra, inked two reconnaissance contracts with Charles David Tautfest, president of Esso Exploration International Limited, a subsidiary of US oil major ExxonMobil Corporation 

Morocco's hydrocarbons strategy has seen consistent progress due to projects such as Loukos and Anchois, which can potentially become major supply sources for the region's gas market. The country is also working to produce the world's cheapest green hydrogen via a project called White Dunes, spearheaded by Falcon Capital Dakhla in collaboration with HDF Energy.

First exploration since 1999

Signed in ONHYM headquarters, the reconnaissance contracts mark ExxonMobil's first exploration activity in Morocco since 1999. The areas of operation to be covered are Safi-Essaouira and Agadir-Ifni offshore the cities of Safi, Essaouira, Agadir and Sidi Ifni. 

The Moroccan offshores are also known for prospective acreages such as the Lixus and Rissana licences which are being developed by Energean and Chariot. 

 

The group’s overall production was only marginally above its target by just 53,000 bpd. (Image source: Rystad Energy)

While June output reflected improved production cut compliance in OPEC + group, Rystad Energy has observed that countries such as Sudan, South Sudan, Nigeria, Gabon, Equatorial Guinea, and Congo-Brazzaville, among others, continue to overcomply with the official cuts 

Congo has been vocal about its commitment to the organisation, stating the importance of nurturing a stable and prosperous energy future. 

Nigeria was one of the countries whose output recovery shot production rates from non-voluntary cutters to 3.044 mn bpd, which is 142,000 bpd higher than in May.

While Nigeria recovered, it still fell short of target (210,000 bpd in June), one of the primary reasons of undercompliance from 10 of the member countries, whose production this month was 3.435 mn bpd – 142,000 bpd higher than in May. 

Tension between Sudan and South Sudan has also impacted their production as June output in South Sudan was only 48,000 bpd – 76,000 bpd lower than its target. Sudan, on the other hand, produced only 31,000 bpd – 33,000 bpd below its quota.  

Strong compliance among member countries 

Despite increases from Nigeria (39,000 bpd) and Brunei (45,000 bpd), overall figures for June show that OPEC+ production dropped by 140,000 to 40.911 mn bpd, especially due to lower output in Russia (173,000 bpd) and the UAE (76,000 bpd).

The group’s overall production was only marginally above its target by just 53,000 bpd – its lowest level since the start of the year. This pointed to improved compliance as observed by Jorge León, senior vice president - oil market research, Rystad Energy, who said, “The recent improvement in compliance levels with the OPEC+ cuts show strong commitment and cohesion inside the group. It also shows that the compensation mechanism put into place is working. I expect to see strong compliance continuing in the coming months.” 

Compliance among the eight voluntary cutters – Oman, Kuwait, the UAE, Algeria, Saudi Arabia, Russia, Iraq and Kazakhstan – has improved.

Kurt Barrow, head of oil markets, S&P Global Commodity Insights observed last year that crude pricing in 2024 depends on OPEC+'s ability to follow through on voluntary production cuts. Maintaining discipline among member countries can be especially difficult due to strong non-OPEC+ supply growth and slowing oil demand growth.  

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