The Angolan parliament unanimously approved today the request to authorize the President to amend the oil concession for Block 14, which includes areas of joint exploration between Angola and the Democratic Republic of Congo (DRC).
Presenting the proposal, the Secretary of State for Petroleum and Gas explained that the intended amendment aims to separate the Negaje and Menongue development areas from Block 14 to integrate them into the Block 14/23 concession.
José Barroso stated that the separation will allow for redefining the geographic boundaries of Blocks 14 and 14/23; increasing geological knowledge; mitigating production decline; replenishing reserves estimated at 298 million barrels of oil; securing a $15 million signature bonus (€14.4 million); a fixed annual production bonus of $500,000 (€480,000) for 15 years from the start of production, and generating revenues of approximately $5.7 billion (€5.47 billion) through taxes and payments to the national concessionaire.
The Angolan official highlighted that the national concessionaire has entered into a production-sharing contract with the contractor group for Block 14, which currently includes Chevron (as operator), Azule Energy, Sonangol Pesquisa & Produção, Angola Bloco 14BV, and Galp.
The Secretary of State emphasized that the Block 14 concession area, located in the Lower Congo Basin with a water depth of 600 to 1,000 meters, includes the Negaje and Menongue development areas, which extend beyond Angola’s geographic borders into the maritime zone of joint interest between Angola and the DRC.
Responding to concerns raised by lawmakers, José Barroso assured that Block 14/23 will be operated by the same contractor group and that its development will adhere to Angolan law.
“The Congolese side, considering our expertise and capacity, decided to allow us to develop this joint area based on our legislation. Our national concessionaire, with the integration of some personnel from the Congolese concessionaire, will oversee all activities,” he explained.
According to the Angolan official, this production-sharing agreement also seeks to avoid potential conflicts with the neighboring country.
“We have a positive example of oil field exploration or development” with the DRC, “and it is based on this positive experience that we confidently move forward with this partnership,” he added, noting that if results are favorable, both nations could jointly advance the development of other economically significant areas.
Lusa, 22/01/2025
