Angola is strategically positioning itself in the oil sector by evaluating proposals for onshore blocks, aiming to boost production beyond its current million-barrel-per-day threshold. The National Oil, Gas and Biofuels Agency (ANPG) has recently concluded the 2023 public tender for 12 onshore oil blocks in the Lower Congo and Kwanza basins, choosing nine companies as operators and five as non-operators.
International companies are enthusiastically competing for these valuable opportunities, including Etu Energias, Sonangol, Serinus Energy, Walcot Ltd, Acrep, Grupo Simples Oil, Intank Group, Transoceanic, and ACE Energy as operators, and Sonangol, Grupo Simples Oil, Afentra, Enagol, and Effimax Energy as non-operators. The formation of contractor groups has resulted in Etu Energias operating Block CON2 with Effimax Energy and Simples Oil as non-operators, and Block CON8 being operated by Etu Energias, Effimax Energy, Simples Oil, and Enagol as non-operators.
The strategic management plans conceived by the Angolan Government, including the General Strategy for the Allocation of Petroleum Concessions for the period 2019–2025, aim to unleash the full potential of the country's hydrocarbon sector. With an estimated 9 billion barrels of proven crude oil reserves and 11 trillion cubic feet of proven natural gas reserves, Angola's onshore blocks are attracting significant attention from local and international companies seeking to participate in exploration and production activities.
According to Scott Gilbert, CEO of Corcel, "developing Angola's onshore blocks serves as part of the company's growth strategy, which involves conducting drilling operations in Block KON-16". This comes as part of a broader strategy to pursue new ventures and acquire oil and gas processing assets in Angola.
The 2025 licensing round set for the first quarter of this year is expected to attract significant interest, offering strategic investment opportunities for energy companies. The upcoming round will feature six available onshore blocks in the Lower Congo and Kwanza Basins, both of which have been extensively surveyed and hold promising but underexplored pre-salt succession.
Angola Awards Onshore Oil Blocks Amid Sector Growth
Angola's oil sector is experiencing significant developments as the National Agency of Oil, Gas and Biofuels (ANPG) continues to advance its 2023 public tender for onshore blocks. Having received 53 bids from 22 companies, the agency selected nine qualified companies for exploration and production activities. The agency selected nine operators and five non-operators based on their financial and technical capabilities.
Four blocks – CON2, CON8, KON13, and KON19 – have been successfully awarded to contractor groups. Block KON 13, located in the Kwanza Onshore Basin, has been awarded to Oando Energy Resources (OER) as the operator, with Effimax holding a 30% stake and Sonangol a 15% stake. The block boasts estimated prospective resources of 770 to 1,100 million barrels of oil and has seen two exploration wells drilled to a target depth of 3,000 meters, with oil and gas shows recorded at various depths.
However, some blocks remain without operators, including CON7 and KON7, while others received unsatisfactory bids or no bids at all. The blocks without operators or with unsatisfactory bids will be made available for the formation of contractor groups.
Regarding the recent award, Wale Tinubu, Oando's Group Chief Executive, stated, "I am thrilled by our successful bid and award of Block KON 13 in Angola. This development underscores Oando's relentless commitment to expanding our footprint across Africa and contributing to the continent's energy-sufficiency goals."
As Angola continues to develop its oil sector, the country is planning a new licensing round in early 2025, offering six onshore blocks in the Lower Congo and Kwanza basins. The country's onshore blocks present significant opportunities in both pre-salt and post-salt plays, with minimum spending commitments set at $6 million for some blocks and high success rates in post-wildcats. Angola aims to maintain oil production above 1 million barrels per day beyond 2027.
The award of Block KON 13 further solidifies Oando's position in Africa's energy market, reflecting its commitment to driving regional growth and energy security. According to Wale Tinubu, "We look forward to collaborating with our co-venturers and other key stakeholders to unlock its full potential for Angola and Africa as a whole."
The development of these onshore blocks is crucial for Angola's long-term energy strategy, contributing to its goal of maintaining oil production levels and expanding its upstream operations across the continent.