Ver Angola

Energy

ANPG and Block 14 partners bet on increased production

The National Agency of Petroleum, Gas and Biofuels (ANPG) and the partners of Block 14 - Chevron, Sonangol, Angola Block 14 B.V, ENI and Galp - signed this Thursday a memorandum of understanding aimed at redemarcating the development area of this block. This memorandum will "allow to increase the field of action of the block already in operation".

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The agreement foresees the production of 51 million barrels of oil by 2028, adding 400 million dollars to state revenues.

ANPG, in a statement sent to VerAngola, states that this memorandum intends to "include the Kuito", Benguela, Belize, Lobito and Tomboco areas in a single development area called Tombwa-Lândana.

The agreement, the statement said, "will allow to increase the field of operation of the block already in operation.

At the signing ceremony, the President of ANPG, Paulino Jerónimo, applauded the rapid understanding between those involved and stated that this work "makes it possible to achieve" the "objectives regarding the dynamisation of the national oil sector and the achievement of concrete results in the medium term".

"The ANPG, as the national concessionaire, feels, with these initiatives, that the plans outlined for the sector are being fulfilled, with the coordination of the Ministry of Mineral Resources and Petroleum and with the active collaboration of private entities - which is obviously worth noting, because it is already bearing good fruit", he added.

In the same vein, Chevron Angola's Director General, Derek Magness, stated that this document "represents a significant step towards revitalising oil exploration and production in Block 14.

Diamantino de Azevedo, Minister of Mineral Resources and Petroleum, stressed "the importance of extending production areas. On the one hand, because they are safe investments with guaranteed returns, and on the other, because they configure the strengthening of the relations of investors and partners who have always believed and been present in the oil sector in Angola and of their commitment to the objectives of the Government in this area of activity, which continues to be of paramount importance for the development of the economy and social welfare".

Speaking to the Lusa agency, Galp's general manager, Diogo Martins, said that this agreement means for Block 14 an increase in its production capacity and competitiveness and new projects that will generate an increase of around 50 million barrels, estimated at 370 million euros.

Galp, with a 9 per cent stake in Block 14, is also present in Blocks 32 and Bianzi, in which it has several projects, each one of them of production development.

"There are several initiatives of greater investment that will bring, in the medium term, more production to the three blocks," said Diogo Martins, stressing that the investments are recurrent.

Besides the increase in production with a positive impact on Angola's economic results, the president of ANPG described, there will be additional investment in the block of around 600 million dollars.

He stressed that this agreement was part of the executive's strategy to mitigate the sharp decline in oil production and generate more jobs.