Azule Energy Unveils Significant Gas Discovery Offshore Angola

Azule Energy, a joint venture between international energy giants BP and Eni, has announced the discovery of a significant natural gas reservoir offshore Angola. This marks the first dedicated gas-targeting exploration well in the country, located at the Gajajeira-01 exploration site in the Lower Congo Basin. Initial assessments indicate that the gas volumes in place could exceed 1 trillion cubic feet, along with up to 100 million barrels of associated condensate.

The discovery confirms the presence of a viable hydrocarbon system and opens new exploration prospects in the area. Azule Energy, which operates Block 1/14, is set to continue evaluating the full potential of this find while collaborating with its partners: Equinor, Angola’s state oil company Sonangol, and Acrep SA. These efforts are aimed at determining the most effective strategy for development.

Paulino Jerónimo, chairman of the board of directors of Angola’s National Agency of Petroleum, Gas and Biofuels (ANPG), highlighted the significance of this discovery. He stated, “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.”

Adriano Mongini, the CEO of Azule Energy, expressed optimism about the future of gas exploration in Angola. He remarked, “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.”

Angola’s oil production has been a focal point for the country, especially as it peaked at 2 million barrels per day (bpd) in 2008. However, recent years have seen a decline in output, now hovering around 1.1 million bpd, largely due to underinvestment in offshore resources. High development costs have led many companies to reconsider Angola as an investment destination.

As of January 2024, Angola’s government aimed to revitalize its oil production and navigate a recent dispute with OPEC and OPEC+ members regarding production quotas. The recent gas discovery could position Angola prominently on the global gas and LNG export map, especially as both BP and Eni, alongside other major energy players, continue to develop LNG projects along the coasts of West and East Africa, including initiatives in Senegal, Mauritania, and Mozambique.

The implications of this discovery extend beyond immediate economic benefits, potentially reshaping Angola’s energy landscape and attracting further investments in its natural gas sector. As Azule Energy and its partners advance their plans, the broader impact on local communities and the global energy market remains to be seen.