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Energy

Fitch says Angola's oil block bidding round “was a success”

Consultant Fitch Solutions considered that the result of the September round for licensing new oil exploration in Angola was a success and indicates good prospects for oil production in the country.

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"The results of the tender announced by the National Agency for Petroleum, Gas and Biofuels (ANPG) indicate strong prospects for onshore exploration," analysts write in a comment to the September 24 bidding round, which awarded the nine blocks under bidding.

"The interest of national and foreign companies signals that the ongoing reforms in the oil and gas sectors are attracting investors", reads the comment, sent to investors and to which Lusa had access, in which it is pointed out that " the reduction of the oil tax from 50 to 30 percent was a strong incentive for national companies to compete in the process".

Nine contracting groups, three foreigners and six Angolans, are going to operate the oil blocks in the onshore basins of the Lower Congo and the Kwanza.

"The success of this round is particularly notable as several blocks were previously available in the 2014 licensing round, which was canceled by Sonangol in 2017 due to several factors, including falling oil prices and an unfavorable economic climate," recalls Fitch Solutions, noting that the presence of national companies "reflects a strong desire to maintain a presence in the Angolan oil and gas sector, despite previous difficulties".

The negotiation process is expected to last until December 3rd, with contracts to be signed in the first quarter of next year, which should favor an increase in exploration activities over the next decade, concludes Fitch Solutions.

In accordance with Angola's 2020-2025 Hydrocarbon Exploration Strategy, the licensing rounds are expected to continue, with the allocation of 55 blocks planned by 2025.
On September 24, ANPG announced that nine contracting groups will operate the new blocks.

Itanka Group, a partner in the Congo 1 block, comes from the United States, and Brite's, a partner in the Kwanza 9 blocks, Kwanza 17 and Kwanza 20, indicates ANPG in a statement.

Canadian MTI Energy will be the operator in the Congo 5, Kwanza 5, Kwanza 17 and Kwanza 20 blocks and is a partner in the Kwanza 6 block.

Of the Angolan companies, 12 in total, five are also operators.

Somoil will be the operator of the Congo 1 block, Mineral One of the Congo 6 block, Simples Oil of the Kwanza 6 block, Alfort Petroleum of the Kwanza 8 block and AIS Angola of the Kwanza 9 block. partners in other blocks.

Angolan companies Monka Oil, Omega, Prodoil, Prodiam, Upitec, Servicab and Sonangol Pesquisa & Produção are also part of the contracting groups for the blocks now awarded.

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