Australian-based Red Sky Energy has acquired a 35% interest in offshore Block 6/24 in Angola’s Kwanza Basin, marking a significant milestone for the company.
The announcement follows the signing of a risk service contract with Angola’s National Oil, Gas, and Biofuels Agency. Block 6/24 is operated by Sonangol E&P, which holds a 50% stake, alongside Acrep with a 15% interest.
Located 12 kilometres offshore, Block 6/24 is situated in a region known for its oil discoveries and high prospectivity. Of the nine wells drilled on the block, the Cegonha oilfield stands out with its commercial potential. According to Andrew Knox, Red Sky’s managing director, the joint venture (JV) partners aim to evaluate the Cegonha discovery for early production and cash flow generation. “Block 6/24 contains a potential commercial oil discovery. The JV partners plan to prove up these resources, further improving the economics of the block,” Knox said.
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The block’s prospects are bolstered by extensive 2D and 3D seismic data, indicating substantial resource potential. Red Sky and its partners plan to explore these resources further to enhance the block’s economic viability. Knox also noted strong interest from multiple parties in providing full project financing for the development, a promising sign for the venture’s future.
Next steps for Red Sky include formalising a joint venture operating agreement with its block partners and obtaining parliamentary approval for the risk service contract. This strategic move positions Red Sky to capitalise on Angola’s rich oil reserves while contributing to the development of the country’s energy sector.
