Angola Pivots to Gas Development as Oil Output Stagnates
Angola is strategically shifting focus toward natural gas development to drive economic growth as oil production stagnates despite the country’s exit from OPEC. Azule Energy is considering another gas exploration well following the success of the country’s first drilling campaign specifically targeting gas resources last month.
Angola expects gas production to rise more than 20% over the next five years as it targets higher exports to Europe and Asia while meeting growing domestic demand. The pivot toward natural gas forms part of an industrialization program based on favorable investment terms.
Adriano Mongini, CEO of Azule Energy, a joint venture between BP and Eni, expressed optimism about Angola’s untapped gas potential, stating that the country’s prolific basins suggest much more gas reserves can be found. A second well could be drilled within two years, with existing infrastructure near the first gas discovery, Gajajeira-01, potentially aiding its development.
Initial estimates show Gajajeira-01 exceeding one trillion cubic feet of gas and containing up to 100 million barrels of condensate. The latest government data showed natural gas exports totaled 1.35 million tonnes in the second quarter, up 19.1% from the first quarter, with liquefied natural gas accounting for most exports to India and Spain.
Angola’s gas output is projected to rise to 3,659 million standard cubic feet per day by 2030 from 2,973 MMSCFD this year. Chevron’s Sanha Lean gas project and the Azule-led New Gas Consortium will help lead higher output efforts, with development of Quiluma and Maboqueiro fields due to launch around end-2025. The country anticipates $60 billion in oil and gas investments over the next five years, with 23 exploration wells expected to be drilled, 11 of them offshore.
Source: reuters.com
