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The National Agency of Petroleum, Gas and Biofuels (ANPG) of Angola held a ceremony to open the proposals received for its latest bid round for offshore blocks in the Lower Congo and Kwanza offshore basins on Tuesday April 5, 2022, in Luanda in what was an invitation-only tender. In the presence of H.E. Diamantino Azevedo, Minister of Mineral Resources, Oil and Gas, and José Barroso, Secretary of State for Oil and Gas, the round of offshore blocks piqued the interest of several global oil majors, with three companies submitting bids for two of the blocks in the Lower Congo Basin.
Representing part of the third bid licensing round launched by the ANPG on February 25, 2022, the launch saw proposals by Italy’s Eni, French-based TotalEnergies and Norway’s Equinor, with “potential initial investment commitments expected to reach $58.6 million to ensure the execution of the minimum works program,” according to an ANPG press release.
During the launch, Eni Angola submitted a proposal for Block 31/21, whereby the Italian major would serve as operator with 50% stake in consortium with Equinor. The proposal comprises a $5 million bonus with a one-time payment 30 days following first production at the block.
Additionally, TotalEnergies submitted a proposal for Block 16/21. The proposal would see the French company with a 100% stake with the bonus paid in accordance with the accumulated volume of production in a range of 0.10 cents per barrels – pending the accumulated production is less than 200 million barrels – with the potential of reaching 0.30 cents if production is equal or greater than 400 million barrels.
“The resumption of bids in Angola, after its long shutdown, is something that in time will de facto contribute to the dynamization of the industry and the economy, since without investment there will be neither new discoveries nor increased production. The fact that we are gathered here to witness the public opening of bids for the third bid round is already a victory for this whole team that has been committed to implementing the national strategy outlined for the sector,” stated H.E. Minister Azevedo during his opening speech at the launch,” adding that, “We will continue to work with the dynamics of the global extractive industry so that we can obtain concrete results from the natural resource potential that we have in this important sector of our economy, exploring more and producing more.”
ANPG President, Paulino Jerónimo, stated that, “[The fact that] the basins under bidding have already been studied and that investors have been able to attest that our business environment is attractive – and that investors recognize it – [shows that] that ANPG is a guarantor of dialogue and continuous work with operators and partners who trust in Angola.”
The remaining blocks which did not receive proposals will be available for award under Presidential Decree No. 249/21.
