Oil and gas supermajor, ExxonMobil, could inject as much as $15 billion into the development of hydrocarbon reserves in Angola’s offshore Namibe Basin by 2030.
The investment is largely based on the success of commercial oil discoveries in the southern African country and follows the improvement of fiscal terms in the basin by the Government of Angola.
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With a Memorandum of Understanding (MoU) improving the fiscal terms of Blocks 30, 44, and 45 having been signed on 14 March by Angola’s national concessionaire and regulatory body, the National Agency for Oil, Gas and Biofuels (ANPG); national oil company Sonangol; and ExxonMobil to make exploration in the area more competitive, the supermajor is expected to drill an exploration well by 2024.
The MoU, which was signed by the Chairman of the Board of Directors of the ANPG, Paulino Jerónimo; the Chairman of the Executive Committee of Sonangol, Ricardo Van-Deste; and the Director General of ExxonMobil in Angola, Melissa Bond, is expected to stimulate oil exploration in the largely unexplored area while serving to attract investment into Angola’s oil sector, which accounts for over 90% of the country’s exports.
“We plan to leverage our advanced technology, project execution capabilities and commitment to safety and environmental performance to identify new commercial discoveries,” Bond stated.
The ANPG estimates that investments of up to $200 million will be injected into seismic studies and the drilling of an exploratory well in the Blocks by next year, with the development of a large commercial discovery poised to result in revenue of between $20 billion and $40 billion for the country – considering a price analysis of between $50 to $60 per barrel of oil.
“The MoU, which is the result of negotiated terms, provides considerable benefits for all parties involved,” stated Jerónimo, adding, “The drilling of the first well in the Namibe Basin will expand geological knowledge and the country’s oil potential in strict alignment with the objectives defined in the General Strategy for Concession Production.”
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Having mobilized the Valaris Ds-9 drillship to Angola’s offshore until July 2024, the MoU will serve to reinforce the company’s commitment to the exploration sector in the country. ExxonMobil currently has interests in three deepwater blocks covering an area of approximately 8,000 km2, boasting an estimated resource potential of approximately 10 billion barrels.
Insight into Angola’s lucrative oil and gas industry is set to be explored at this year’s Angola Oil & Gas (AOG) conference and exhibition. Following three successful editions, the conference will serve to unite energy leaders, national and international oil companies, and global financers, providing the opportunity for networking, presentations, exhibitions, and deal-signings. For more information about the 2023 edition of AOG, keep following Energy Capital & Power’s website and social media channels!