Australian exploration and production company Red Sky Energy has finalized a Risk Service Contract (RSC) for Block 6/24 in Angola’s Kwanza Basin, marking its first entry into the country.
The deal – signed on December 31, 2024, in partnership with Angola’s upstream regulator the National Agency for Oil, Gas and Biofuels (ANPG), Sonangol Exploração e Produção SA and ACREP Exploração Petrolífera SA – grants Red Sky Energy a 35% interest in the block.
“Block 6/24 contains a potential commercial oil discovery that the JV partners plan to evaluate for early production and cash flow generation,” stated Red Sky Energy CEO Andrew Knox, adding, “The Block also has substantial resource potential based on the existing 2D and 3D seismic data. The JV partners plan to prove up these resources, further improving the economics of the Block.”
Spanning 4,930 km² and located 12 km offshore, Block 6/24 is covered by extensive 2D and 3D seismic data and includes the Cegonha oil discovery, which is considered commercially promising. Development plans include implementing a Joint Venture Operating Agreement, parliamentary ratification of the RSC, and three years of geological and geophysical studies to evaluate the block’s full potential. A decision to drill an optional well is planned for Year 4, contingent on the initial findings.
All companies involved in the deal participated in the 2024 edition of the Angola Oil & Gas (AOG) conference, where Knox joined a panel discussion to outline Red Sky Energy’s ambitions in Angola. He stated that the company is interested in non-operated opportunities, particularly in joining already-producing blocks, as part of its strategy to diversify and de-risk its asset base.
“Angola is very friendly to oil and gas, and it’s why we’re looking here. There is a lot of deal flow and opportunity – not only on the exploration front but to buy into existing production. There is good local content here and opportunities to vertically integrate downstream. We are focused on Angola at this point,” Knox said.
The RSC deal is a direct result of the networking and business opportunities provided by AOG, highlighting the event’s reputation as a premier deal-making platform for Angola’s oil and gas industry. With its focus on fostering partnerships and driving investment, AOG continues to serve as a vital forum for connecting companies and unlocking growth potential in Angola’s oil and gas sector.