Concession Contracts Bolster Upstream Activities
The signed concession contracts signal new opportunities for the expansion of E&P activities in Angola while further consolidating the upstream potential that remains in the mature market.
A concession signed for Block KON-2, which took place in Luanda on 25 May, marked the entry of upstream and downstream development company Inktank Group; upstream consulting company Brite’s Oil and Gas; and mining solutions company MTI Group, to Angola’s market.
Additionally, Block KON-11 involves a consortium comprising Brite’s Oil and Gas; independent energy company Atlas Petroleum Exploration Worldwide (Apex); Angolan oil and gas developer Simple Oil and Gas; and consultation service Omega Risk Solutions – with Angola’s National Oil Company Sonangol serving as operator.
The initialing of documents by the ANPG and contractor groups for the KON-12 and KON-16 oil Blocks was held on 26 May while, marking its debut in Angola’s oil and gas space, mining and mineral resource development company Corcel PLC acquired a 90% interest in Apex on 24 May, thus resulting in a working interest of between 20% and 25% in the Kwanza Basin’s Blocks KON 11/12 and 16. Acquisition terms for the deal include an initial 5-year exploration phase, a subsequent 2-year exploration phase, and a 2-year base production period, with minimum spend of $6 million for KON-11 and KON-12, and $3 million for KON-16.
Tender 2023 Kickstarts E&P Progress
Preceding the signing of the concession contracts, on 1 April, the ANPG announced the launch of Tender 2023 for the concession of an additional 12 onshore oil blocks in Angola’s onshore Lower Congo and Kwanza Basins. The deadline for proposals is set for November 2023 and will include Blocks CON 2/3/7 and 8 and KON 1/3/7/10/13/14/15 and 19. This concession marks the second conclusive offering of onshore blocks in two years for sub-Saharan Africa’s largest oil producer.
Tender 2023 has already served to relaunch Angola’s onshore E&P activities while mitigating a decline in production by increasing the discovery of new resources. An ANPG-led roadshow for the tender took place in Luanda on 19 June, presenting technical assessments of existing data, accessibility studies and environmental legislation, contractual frameworks, and logistic conditions for the blocks, providing potential investors with the information they need to make informed decisions on the market.
Angola Remains Ripe for Investment
Serving as sub-Saharan Africa’s largest oil producer and boasting oil and gas resources estimated at 8.2 billion barrels of proven crude oil reserves and 13.2 trillion cubic feet of proven natural gas, Angola’s upstream market is expected to record a growth of more than 1.5% between 2022 and 2027. Furthermore, as a result of major discoveries by oil and gas supermajors such as ExxonMobil, TotalEnergies and Azule Energy, as well as a government-led focus on the development of crude oil and natural gas assets throughout the country, Angola and its national concessionaire offer regional and international players the opportunity to participate and invest in Africa’s premier hydrocarbons frontier.
As such, Angola’s oil and gas sector is witnessing an accelerated pace of new investments. Major developments in Angola’s hydrocarbons industry will be unpacked during this year’s edition of the Angola Oil & Gas (AOG) 2023 conference and exhibition, taking place in Luanda from 13-14 September. Hosted in partnership with Sonangol and Angola’s Ministry of Mineral Resources and Gas, AOG 2023 is set to spur investment and deal-making in the country and regional energy value chains while highlighting the role of Angola’s resources and industries in the shifting global economy.