State-backed Azule and its partners in Angola have confirmed a new offshore oil discovery estimated at 500 million barrels in an offshore block, providing fresh resource potential as the country works to steady crude production.
The National Oil, Gas and Biofuels Agency (ANPG) of the central African couintry said in a statement on Friday that the discovery was made at the Algaita-01 exploration well drilled in block 15/06.
According to the regulator, drilling began in January and was completed later that month. The well lies about 18 kilometres from the Olombendo Floating Production, Storage and Offloading (FPSO) vessel. Preliminary logs show multiple oil bearing intervals with strong reservoir quality.
ANPG stated that further appraisal will assess recoverable volumes and evaluate a possible tieback to nearby infrastructure.
“The presence of multiple production facilities nearby further enhances the value of this new exploratory success,” Azule Energy Chief Executive Officer Joe Murphy said in the statement.
Angola is Africa’s third largest crude producer with a production of about 1 million bdp capacity. However, the oil-rich nation has faced declining output from ageing offshore fields in recent years.
As a result, new discoveries remain central to efforts aimed at sustaining production levels.
How the Algaita-01 well was drilled
Moreover, ANPG explained that the Algaita-01 exploration well was drilled in deepwater acreage offshore Angola.
The drilling took place in water depths of 667 metres, targeting reservoirs within Block 15/06. The block sits within one of Angola’s established producing basins where several offshore facilities are already in operation.
Early data from the well shows stacked oil bearing intervals.
In addition, the regulator noted that reservoir quality appears strong based on preliminary analysis. Further technical work will now determine the volume of oil that can be commercially produced.
Hence, appraisal drilling and engineering studies will guide the next phase of development planning.
What happens next
Azule Energy operates Block 15/06 with a 36.84% stake. The company is a joint venture between ENI and BP.
Other partners in the block include SSI Fifteen Ltd. with 26.32% and Sonangol E&P with 36.84%. Sonangol E&P is the upstream arm of Angola’s national oil company.
ANPG stated that the proximity of existing production facilities may allow for a tieback if volumes are confirmed. Simply, connecting to the Olombendo FPSO could reduce development costs and shorten timelines.
Offshore tiebacks are commonly used in mature basins to extend field life and maximise infrastructure already in place. Therefore, the commercial assessment of Algaita-01 will determine how quickly the discovery can contribute to Angola’s crude output.
In sum, the 500 million barrel estimate adds new resource potential to Angola’s offshore portfolio. Subsequent appraisal results will confirm the scale and economic viability of the find.
