Azule Energy Inks Contracts for 3 Angola Blocks

Azule Energy has signed risk service contracts (RSCs) for several blocks in Angola’s Lower Congo Basin with the country’s National Oil, Gas and Biofuels Agency (ANPG).

Azule Energy partnered with Equinor ASA and Sonangol Pesquisa e Produção, S.A. (Sonangol P&P) for offshore blocks 46 and 47, and also partnered with Sonangol P&P for Block 18/15. Azule Energy is the operator of the three blocks with a 40 percent participating interest in Blocks 46 and 47 and 80 percent in Block 18/15, the company said in a recent news release.

Sonangol P&P holds 20 percent participating interest in each block and Equinor holds 40 percent participating interest in Blocks 46 and 47. The three licenses cover an area of approximately 3359 square miles (8700 square kilometers) in the deep and ultra-deep waters of the Angolan offshore.

The RSCs are the second license award for Azule Energy after the execution of the Block 31/21 production sharing agreement in August, according to the release.

“We continue our mission as a strategic partner and to remain the biggest equity oil and gas producer in Angola”, Azule Energy CEO Adriano Mongini said. “Blocks 46 and 47 have never been explored before and represent a new frontier exploration area that can be a game changer for our company and the country’s energy industry”.

“Exploration in Block 18/15 can potentially open a new play and take advantage of the synergies with the production facilities already existing in Block 18. Azule Energy has a very strong track-record in exploration and a very fruitful business relationship with both Equinor and Sonangol P&P. Together, we are truly committed to leverage our knowledge of the basin and hopefully find significant resources in these new licenses”, Mongini added.

Angolan oil and gas producer Azule Energy is a 50/50 independent joint venture between BP PLC and Eni SPA. With daily production of approximately 220,000 barrels of oil and over 2 billion barrels of resources, the company supports Angola in the development of its energy sector and its transition to cleaner sources. Azule Energy’s portfolio includes over 20 oil and gas licenses, of which it operates eight.

Azule Energy is also the operator of the New Gas Consortium (NGC), shareholder of Angola LNG and shareholder of Solenova, a 50/50 joint venture with Sonangol dedicated to developing renewable sources of energy and owner of the Caraculo photovoltaic plant.

The final investment decision for NGC was made in July 2022. The project includes the development and production of gas from the Quiluma and Maboqueiro shallow water fields, through two offshore platforms, an onshore gas processing plant and a connection to the Angola LNG plant, with an expected production rate of four billion cubic meters of gas per year. The completion of this project will allow the continuous supply of gas to the Angola LNG plant.

NGC is the first non-associated gas project in Angola, Azule Energy said in an earlier news release, adding that the project has an investment of around $2.2 billion. The project is expected to start production in 2026. Azule Energy is the operator and, jointly with Azule LTD, has a 37.4 percent interest in the project. CABGOC holds a 31 percent interest, with Sonangol P&P and TotalEnergies holding 19.8 percent and 11.8 percent, respectively.

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