Azule Energy, a joint venture of international majors BP and Eni, has discovered a major natural gas reservoir offshore Angola in the first gas-targeting exploration well in the oil-producing country.
Azule Energy, the operator of Block 1/14, has announced a gas discovery at the Gajajeira-01 exploration well, located in the Lower Congo Basin in Angola’s waters.
Initial assessments suggest gas volumes in place could exceed 1 trillion cubic feet, with up to 100 million barrels of associated condensate, Azule Energy said, adding that these results “confirm the presence of a working hydrocarbon system and open new exploration opportunities in the area.”
Azule Energy will continue to assess the full potential of the discovery and collaborate with Block 1/14 partners – Equinor, Angola’s state firm Sonangol, and Acrep SA – to determine the optimal development strategy.
“These new discoveries are a motivating factor in our ongoing efforts to attract private investment in the sector for the development and monetisation of natural gas,” said Paulino Jerónimo, chairman of the board of directors of Angola’s National Agency of Petroleum, Gas and Biofuels, ANPG.
Adriano Mongini, CEO of Azule Energy, commented:
“This is a landmark moment for gas exploration in Angola. Gajajeira-01 is the country’s first dedicated gas exploration well, and its success reinforces our confidence in the potential of the Lower Congo Basin.”
So far, Angola has focused on recovering its oil production, which peaked in 2008 at 2 million barrels per day (bpd). Output has declined in recent years, due to underinvestment in offshore resources due to higher development costs, which have prompted many companies to overlook the African oil producer as an investment destination.
The country aims to boost its current oil production of about 1.1 million bpd, and this was a key reason why Angola quit OPEC as of January 2024, following a spat with the OPEC and OPEC+ members about production quotas.
Angola’s gas discovery could put the country on the gas and LNG export map in the future as both BP and Eni, as well as other energy majors, are active in LNG developments on the coasts of both West and East Africa, with projects in Senegal, Mauritania, and Mozambique.
By Tsvetana Paraskova for Oilprice.com
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