This Angolan National Agency for Petroleum, Gas and Biofuels, (ANPG) has signed a Memorandum of Understanding (MoU) with the consortium that explores block 14, to extend the exploration period until 2028. The consortium comprises Chevron, Sonangol, Eni, Galp and Angola Block B.V.
The MoU changes some of the production sharing agreement’s conditions, including targeting a crude oil production increase that will cover cost recovery in the new exploration areas, up to 65% from 1 April onwards. It also readjusts the oil and profit-sharing arrangement to an 80/20 proportion and includes the drilling of an exploration well and six development wells. Cost recovery climbs to 72.5% after the drilling of the well, and oil and profit-sharing shifts to a 90/10 split.
The agreement is aimed at the areas of Tombwa-Lândana, Benguela, Belize, Lobito, Tomboco and Kui¬to, which will be gathered in a new marked area named Tombwa-Lândana, and will be a new focus of exploration for the operators. The block currently produces in excess of 160,000 barrels of oil per day of medium-light crude oil.
Minister of Mineral Resources and Petroleum, H.E. Diamantino Azevedo, stated that the agreement represents “on one hand, a safe investment with a guaranteed return, and on the other, the tightening of the relationship between the investors and partners that always believed and have been active in the Angolan oil sector and remain committed to the government’s goals for this industry, which continues to be of primordial relevance for the development of the economy and for social wellbeing.”
This MoU is the third agreement signed by ANPG since the beginning of the year, after granting similar extensions to an Exxon-led consortium in block 15 and a Total led-consortium in block 17.